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Determinants of Economic Growth in Turkey in the Presence of Structural Breaks

Ketenci, Natalya and Aydoğan, Ebru Tomris (2019): Determinants of Economic Growth in Turkey in the Presence of Structural Breaks. Published in: Sosyoekonomi , Vol. 42, No. 27 (15 October 2019): pp. 11-28.

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Abstract

Sustainable economic growth is a continuous increase in environmentally adjusted net domestic product (Bartelmus, 1994). This study investigates the role of natural gas consumption and trade openness in the economic growth of Turkey for the period 1977-2017. Turkey underwent several political and economic shocks during this period. Therefore, the paper employs the Kejriwal and Perron (2010) structural break test to investigate the relationship between economic growth and its determinants in the presence of structural shifts. The outcomes underline the importance of breaks consideration in estimations since they provide detailed impacts of variables on economic growth through sub regimes.

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