EXPORT AND ECONOMIC GROWTH IN TURKEY: COINTEGRATION AND CAUSALITY ANALYSIS
EXPORT AND ECONOMIC GROWTH IN TURKEY: COINTEGRATION AND CAUSALITY ANALYSIS

Summary/Abstract: This paper investigates the empirical evidence on the link between export and economic growth by using quarterly time series data for the Turkish economy over the period 2002–2011. The study applies Johensen and Juselius cointegration and Granger causality test. Further, the co-integration analysis established that GDP and export were found to be co-integrated and suggesting an existence of long-run relationship. In the short-run, we find evidence of short-run bidirectional causality to support export-led growth by using Granger causality tests in Turkey for the period between 2002 and 2011. In the long run, our result shows existence of long run unidirectional causality between economic growth and export in the long-run.

• Details
• Contents