Determinants of Economic Growth: The Case of Turkey Under Structural Breaks

Year 2019, Volume: 3 Issue: 1, 202 - 227, 31.01.2019

Fındık Özlem Alper

https://doi.org/10.25295/fsecon.2019.01.008

Cited By: 4

Abstract

In this study, the impacts of financial development, inflation, financial and trade openness on Turkey’s economic growth are examined over the period 1974-2017. The study, in which Fourier-Shin (FSHIN) cointegration test is performed, detects the existence of cointegrated series. According to the results of the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods based on the estimation of long-term coefficients, it is determined that financial development positively affects financial and trade openness as well as economic growth, whereas inflation has negative impacts.

Keywords

Economic growth, Inflation, Fourier-Shin cointegration

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