The Relationship among Exports, Imports and Economic Growth in Turkey

Bakari, Sayef and MABROUKI, Mohamed (2016): The Relationship among Exports, Imports and Economic Growth in Turkey.

Abstract

This paper studies the nexus between exports, imports, and economic growth in Turkey. Annual data for the periods between 1960 and 2015 was tested by practicing Johansen co-integration analysis of Vector Auto Regression Model and the Granger-Causality tests. According to the result of the analysis, there is no relationship between exports, imports and economic growth in Turkey. On the other hand, we found that there is a strong evidence of bidirectional causality from imports to economic growth and from exports to economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Export, Import, Economic Growth, Turkey, Cointegration, VAR and Causality.
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

References

Abugamea, G. H. (2015). The competitiveness of the Palestinian foreign trade: A cointegration analysis. In Economic Research Forum Working Papers (No. 541).

Afaf Abdull J. Saaed and Majeed Ali Hussain. (2015). The causality relationship between exports, imports and economic growth in Jordan: 1977-2012. EPRA International Journal of Economic and Business Review. Vol - 3, Issue- 7, July 2015.

Afaf Abdull J. Saaed and Majeed Ali Hussain. (2015). Impact of exports and imports on economic growth: Evidence from Tunisia. Journal of Emerging Trends in Economics and Management Sciences. 6(1):13-21, (ISSN: 2141-7016).

Bader S.S. HAMDAN (2016) "The Effect of Exports and Imports on Economic Growth in the Arab Countries: A Panel Data Approach". Journal of Economics Bibliography. Vol.3. Issue.1.

Bédia F. Aka (2006) Openness, Globalization and Economic Growth: Empirical Evidence from COTE D’IVOIRE. International Journal of Applied Econometrics and Quantitative Studies Vol.3-2 (2006).

Dickey, D. A. & W. A. Fuller (1979), “Distribution of Estimators of Autoregressive Time Series with a Unit Root,” Journal of the American Statistical Association, 74, 427-31.

Dickey, D. A. & W. A. Fuller (1981) “Likelihood ratio Statistics for autoregressive time series with a unit root,” Econometrica, 49(4):1057-72.

Dritsakis, N., & Stamatiou, P. (2016). Trade Openness and Economic Growth: A Panel Cointegration and Causality Analysis for the Newest EU Countries. Romanian Economic Journal, 18(59), 45-60.

Engle, R. F. & Granger C. W. (1987), “Cointegration and Error Correction: Representation, Estimation and Testing,” Econometrica, 55, 251-276.

Johansen, S. (1988), “Statistical Analysis of Cointegration Vectors,” Journal of Economic Dynamics and Control, 12, 231-54.

Khairul Hashim and Mansur Masih (2014). What causes economic growth in Malaysia: exports or imports ? MPRA Paper No. 62366, posted 24 February 2015.

Masoud Albiman Md and Suleiman NN. (2016). The Relationship among Export, Import, Capital Formation and Economic Growth in Malaysia. Journal of Global Economics. Volume, 4, Issue 2, 1000186.

Mehdi Taghavi, Masoumeh Goudarzi, Elham Masoudi and Hadi Parhizi Gashti (2012) Study on the Impact of Export and Import on Economic Growth in Iran Journal of Basic and Applied Scientific Research. 2(12)12787-12794, 2012.

Phillips, P. C. B. & Perron, P. (1988), “Testing for a Unit Root in Time Series Regression,” Biometrika, 75(2), 335-46.

Sani Hassan Hussaini, B. A. (2015). Exports, Imports and Economic Growth in India. An Empirical Analysis. Global Business Research Journals.

Sachin N. Mehta and al. (2015). The dynamics of relationship between exports, imports and economic growth in India. International Journal of Research in Humanities& Soc. Sciences.Vol.3, Issue: 7, July: 2015.