IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2018-02-27.html
   My bibliography  Save this article

Savings Rates in Turkey: The Prospects For A Sustainable Growth

Author

Listed:
  • Nihal Y ld r m M zrak

    (Anadolu niversitesi, Eskisehir, Turkey,)

  • Muhammet Dastan

    (A r brahim e en niversitesi, Agri, Turkey)

Abstract

The main objective of this study is to reveal the development process of Turkey's savings rates and investigate the causal relationship between domestic savings and sustainable economic growth by employing Hatemi-J (2012) asymmetric causality test under the time series analysis for the period of 1980-2016. Results of the study indicate that the problem of the inadequate level of domestic savings has not been solved yet in Turkey. It is seen that domestic savings in Turkey have remarkably declined mainly from the 1990s and remain considerably low level at 14 percent over the past few years. It is also seen that Turkey's domestic savings remain considerably below that of the world average and most of the different income group countries. Besides, Hatemi-J (2012) asymmetric causality test results indicate that there is an existence of causality running from positive shocks on real GDP (RGDP) to positive shocks on gross domestic savings (GDS) at 1% significance level while positive shocks on GDS cause positive shocks on RGDP at 5% significance level. This study, however, could not find evidence of any causal relationship between negative shocks on GDS (RGDP) and negative shocks on RGDP (GDS) at an appropriate significance level.

Suggested Citation

  • Nihal Y ld r m M zrak & Muhammet Dastan, 2018. "Savings Rates in Turkey: The Prospects For A Sustainable Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 227-237.
    • Handle: RePEc:eco:journ1:2018-02-27
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/6312/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/6312/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nurudeen ABU, 2010. "Saving-Economic Growth Nexus In Nigeria, 1970-2007: Granger Causality And Co-Integration Analyses," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 5, pages 93-104, June.
    2. Pradeep Agrawal, 2001. "The relation between savings and growth: cointegration and causality evidence from Asia," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 499-513.
    3. Pradeep Agrawal & Pravakar Sahoo, 2009. "Savings and growth in Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 42(2), pages 89-110, January-M.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bassam AbuAl-Foul, "undated". "The Causal Relation between Savings and Economic Growth: An Empirical Analysis," Economics Working Papers 06-05/2015, School of Business Administration, American University of Sharjah.
    2. Abdelhafidh, Samir, 2013. "Potential financing sources of investment and economic growth in North African countries: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 150-169.
    3. Piotr Misztal, 2011. "The Relationship Between Savings And Economic Growth In Countries With Different Level Of Economic Development," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 7(2), pages 17-29, August.
    4. Soylu Özgür Bayram, 2019. "Do foreign direct investment and savings promote economic growth in Poland?," Economics and Business Review, Sciendo, vol. 5(4), pages 3-22, December.
    5. Yaya Keho, 2019. "Relationship Between Savings And Economic Growth In Cote D'Ivoire," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 202-207.
    6. Segun Thompson Bolarinwa & Olufemi B. Obembe, 2017. "Empirical Analysis of the Nexus between Saving and Economic Growth in Selected African Countries (1981–2014)," Journal of Development Policy and Practice, , vol. 2(1), pages 110-129, January.
    7. Temitope L A, 2014. "The Effects of Foreign Resource Inflow and Savings on the Economic Growth of South Africa: A VAR Analysis," Journal of Economics and Behavioral Studies, AMH International, vol. 6(3), pages 232-241.
    8. Ergin Akalpler & Hemn Adil, 2017. "The impact of foreign direct investment on economic growth in Singapore between 1980 and 2014," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(3), pages 435-450, December.
    9. Omar Masood & Priya Darshini Pun Thapa & Olivier Levyne & Frederic Teulon & Rabeb Triki, 2014. "Does Co-integration and Causal Relationship Exist between the Non- stationary Variables for Chinese Bank’s Profitability? An Empirical Evidence," Working Papers 2014-249, Department of Research, Ipag Business School.
    10. Błoch Wiktor, 2023. "What drives the savings rate in middle -income countries?," Economics and Business Review, Sciendo, vol. 9(4), pages 56-73, December.
    11. Kelly B. Olds, 2018. "The Taiwan tea boom—a financial glut," Economic History Review, Economic History Society, vol. 71(4), pages 1227-1248, November.
    12. Yaya KEHO, 2018. "Which comes first – savings or growth? Time series evidence from ECOWAS countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(615), S), pages 247-254, Summer.
    13. Yui Suzuki, 2012. "Binding constraint on economic growth under export-oriented industrialization and globalization," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2569-2576, July.
    14. Chor Foon Tang, 2015. "How Stable is the Savings-led Growth Hypothesis in Malaysia? The Bootstrap Simulation and Recursive Causality Tests," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 9(1), pages 1-17, February.
    15. Sallahuddin Hassan & Zalila Othman & Zalina Mohd Mohaideen, 2018. "The relationship between economic growth and employee provident fund: an empirical evidence from Malaysia," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 229-242, April.
    16. Alexander Cotte Poveda, 2013. "The relationship between development, investments, insecurity and social conditions in Colombia: a dynamic approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2769-2783, August.
    17. Muhammad Shafiullah & Faridul Islam & Ravinthirakumaran Navaratnam, 2020. "The Harberger–Laursen–Metzler effect: evidence from five SAARC countries," Empirical Economics, Springer, vol. 58(4), pages 1749-1777, April.
    18. Yilmaz BAYAR, 2014. "Savings, Foreign Direct Investment Inflows and Economic Growth in Emerging Asian Economies," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(8), pages 1106-1122, August.
    19. Shahbaz, Muhammad & Islam , Faridul & Shabbir, Muhammad Shahbaz, 2012. "Phillips Curve in a Small Open Economy: A Time Series Exploration of North Cyprus," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(4), pages 113-130, December.
    20. Sachin N. Mehta & Gaurang D. Rami, 2014. "Nexus Between Savings, Investment And Economic Growth In India," Working papers 2014-12-12, Voice of Research.

    More about this item

    Keywords

    Sustainable Growth; Domestic Savings; Hatemi-J Asymmetric Causality Test.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2018-02-27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.