EXPORT AND ECONOMIC GROWTH IN TURKEY: COINTEGRATION AND CAUSALITY ANALYSIS
FATIH MANGIRABSTRACT. This paper investigates the empirical evidence on the link between export and economic growth by using quarterly time series data for the Turkish economy over the period 2002–2011. The study applies Johensen and Juselius co-integration and Granger causality test. Further, the co-integration analysis established that GDP and export were found to be co-integrated and suggesting an existence of long-run relationship. In the short-run, we find evidence ofshort-run unidirectional causality to support export-led growth by using Grangercausality tests in Turkey for the period between 2002 and 2011. In the long run, our result shows existence of long run bidirectional causality between economic growth and export. pp. 67–80
JEL Classification: D92, F43, N1, O41
Keywords: trade and growth, export-led growth (ELP) strategy,
cointegration and Granger-Causality Test