Asst. Prof. Sevda YAPRAKLI () (Ataturk University)
Abstract
The purpose of this paper is to investigate the relationship between trade and financial openness and economic growth in Turkey. For this purpose for the period of 1990:1-2006:4, the relationships between trade and financial openness rates and real economic growth rate are analyzed econometrically by employing multivariate cointegration analysis, error correction-augmented Granger causality tests and vector error correction model. According to the results, economic growth is positively effected by trade openness, and negatively by financial openness in the long run. Error correction-augmented Granger causality tests show that there is bi-directional causality between trade and financial openness and economic growth. Furthermore, it is observed that one-directional causality exists from trade openness to financial openness.
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Find related papers by JEL classification: C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions F15 - International Economics - - Trade - - - Economic Integration F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies