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- Title
TRADE OPENNESS, FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: AN EMPIRICAL STUDY OF TURKEY.
- Authors
ÇINAR, Mehmet; NULAMBEH, Ndzembanteh Aboubakary
- Abstract
The causal effects of trade openness, foreign direct investment and economic growth is verified empirically using the Turkey time series data for the period 1974 to 2015. Numerous tests have been conducted to find out this effect for instance the ADF and Philips Perrons tests, designating that all the variables are non-stationary in level but after the first difference they became stationary. The Johansen tests of co-integration put indicates the presence of a long-run association amongst the variables with all the long-run coefficients significant at 5% level. The Granger causality tests indicate unidirectional causality from economic growth, exports, and inflation to trade openness, inflation, foreign direct investment and imports to per capita income. Similarly, the result also indicates the existence of bidirectional causality running between exports and per capita income, trade openness and per capita income and finally imports and per capita income. The results of variance decomposition display that export is the main variable causing trade liberalization in Turkey, denoting that exports oriented strategy should be stimulated.
- Publication
Paradoks: The Journal of Economics, Sociology & Politics, 2017, Vol 13, Issue 1, p59
- ISSN
1305-7979
- Publication type
Academic Journal