Causal Links Between Trade And Economic Growth Evidence From Turkey And European Union Countries

Karahasan, Burhan Can (2009): Causal Links Between Trade And Economic Growth Evidence From Turkey And European Union Countries. Published in: Proceedings of GBATA (2009)

Abstract

Openness and economic growth is discussed by heavy concentration on the deterministic relationship running from trade flows to economic growth. While traditional motive of export promotion based growth strategies is heavily discussed, it is the modern growth theories that define possible alternative mechanisms. Technology transfer, place of innovation and spillovers are at the center of the debate. However it is the more contemporary studies that also underline the possible reverse relationship. Originating from such a discussion the study aims to search for the causal relationship by working on a new European Union candidate country, Turkey. Results point out that short term dynamics illustrates a two way relationship.

• Item Type: MPRA Paper
• Language: English
• Keywords: international trade, causality, Turkey
• Subjects: C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C32 - Time-Series Models; Dynamic Quantile Regressions; F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

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