211 13 FINANCIAL DYNAMICS AND ECONOMIC GROWTH: THE CASE OF TURKEY Ali ŞEN 1 , Musa ÖZTÜRK 2 (ORCID ID: 0000-0001-9456-2220), (ORCID ID: 0000-0002-0902-5787) Within the globalization process, competition around the world has been sharp- ened and, the economic growth of countries has become influenced by each other. In this process, which accelerated after 1980, the developments in the financial field made the effect of globalization on national economies much more rapid and deep. Due to this critical importance, the relationship between financial de- velopment and economic growth has been frequently questioned in recent years. Economic growth is among the primary policy tools for people, societies, and gov- ernments to meet the needs and provide opportunities. Stable economic growth allows for increased welfare, poverty reduction, and better quality of service in areas such as defense, education, and health. Therefore, the origin and nature of growth have been questioned since the early periods of modern economics (Türkoğlu, 2016: 84). Here, economic growth can be considered as an increase in real GDP per capita, or with a more analytical approach, production possibil- ities frontier’s shift to the right due to the increase in factors of production and the technology involved (Acar, 2004: 177-179). Savings and investments should be directed in the economy in order to raise the standard of living. The increase in investments, directly and indirectly, affects macroeconomic variables, especially the national income level. In modern societies, investments and savings that will finance investments are separated. The interaction between the two segments is carried out by the financial system (Bozoklu and Yılancı, 2013: 166-167). The 1 Inonu University, Faculty of Economics and Administrative Sciences, Department of Economics. Malatya, Turkey. ali.sen@inonu.edu.tr. 2 Isparta University of Applied Sciences, Vocational School of Yalvaç Büyükkutlu Applied Sciences, Department of Banking and Insurance. Yalvaç/Isparta, Turkey. musaozturk@isparta. edu.tr.