CAUSAL RELATİONSHİP BETWEEN EXPORT EXPANSION AND ECONOMIC DEVELOPMENT IN TURKEY: AN EMPIRICAL INVESTIGATION

Year 1995, , 101 - 109, 05.06.1995

Hilmi Zengin Harun Terzi

https://doi.org/10.14783/maruoneri.708665

Abstract

The effect of export expansion on economic growth is examined through
econometric analysis. The hypothesis that the relationship under the consideration is
significantly affected by the level of development is tested. Ourpurpose is to reconsider
the causality issue with the aid of co-integration and unit root testsfor the periods of
1923-1969 and 1970-1992. Contrary to conventional macroeconomic analysis, this
study implies that Gross Domestic Product (GDP) and Export expansion (EXP) of
Turkey are not cointegratedim implying the lack of any long-run eguilibriutn relations
and causaiity between two variables. Rest of the paper is organised as follows. Section
2 addresses a methodological procedures and altemative testing methods. Section 3
reports the empiricat results and section 4, finally, concludes the paper and suggests
possible directions for the future research.

Keywords

Export Expansion, Turkey, Economic Development

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