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

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.

Anahtar Kelimeler:

Export Expansion, Turkey, Economic Development

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