Financial innovations in developing countries : the case of Turkey

Hergüner, Armağan Önder
Financial innovation is an important phenomenon in the development scheme of financial markets, gaining more ground after the 1980s. The primary aim of this thesis is to investigate two cases of financial innovation in Turkey: Credit card installments and gold accounts. Financial innovation literature lacks an examination of financial innovations in developing countries and does not present any alternative explanations behind their emergence. Differences between institutional structures and the effect of financial liberalization and integration create alternative scenarios for the emergence of financial innovations. Although the development level and the transaction volumes are still significantly lower especially for the securitized financial products in developing countries as suggested by market depth, alternative products can have significant impacts on the economy. Therefore, the case study in this thesis fills a gap in the literature by focusing on two financial innovations in Turkey, an emerging market, which have unique features endogenous to domestic economy and have been used mostly by households. Institutional and cultural factors affect the emergence and development of the markets for both financial innovations, and have altering effects for macroeconomic indicators.
Citation Formats
A. Ö. Hergüner, “Financial innovations in developing countries : the case of Turkey,” M.S. - Master of Science, Middle East Technical University, 2015.