Does Trade Liberalization Cause a Long Run Economic Growth in Turkey
AbstractBased on ‘endogenous’ growth theory, the paper examines the effect of trade liberalization on long-run income per capita and economic growth in Turkey. Although the presumption must be that free trade has a beneficial effect on long run growth, counter examples can also be found. This controversy increases the importance of empirical work in this area. Using the most recent data we employ multivariate cointegration analysis to test the long run relationship among the variables in hand. In a multivariate context, the effect of determinants such as increasing returns to scale, investment in human and physical capital are also included in both theoretical and empirical works. Our causality evidence between the long run growth and a number of indicators of trade liberalizations confirms the predictions of the ‘new growth theory’. However, the overall effect of the possible breaks and/or policy change and unsustainability in the 1990s looks contradictory and deserves further investigation. Copyright Springer 2005
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Bibliographic InfoArticle provided by Springer in its journal Economic Change and Restructuring.
Volume (Year): 37 (2005)
Issue (Month): 3 (09)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=113294
economic growth; openness; Turkey; F43; 024; 052; C5;
Other versions of this item:
- Utku Utkulu & Durmus Özdemir, 2004. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, 09.
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
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