ANALYSIS OF RELATIONSHIP BETWEEN FOREIGN TRADE AND ECONOMIC GROWTH IN TURKEY

Abstract

Author(s): Dilek ŞAHİN Savaş DURMUŞ

After 1980 significant structural transformations have occurred in Turkey's foreign trade policy and foreign trade has become an important determinant of economic growth in Turkey. In this study, the relationship between exports, imports and economic growth for the period 2002: 01-2017: 12 has been analyzed. The stability of the variables, the unit root test without structural break (ADF, PP)and allowing structural breakdown (Lee-Strazcih)were analyzed by unit root test. It was looked causality relationship between variables Fourier Standard Granger tests. In the Fourier Standard Granger causality test, there was a two-way causality relationship between imports and economic growth. It has been seen that economic growth is one-way causality towards export. Analysis findings support the growth hypothesis based on imports in Turkey.

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