Analysis of Globalization and Economic Growth for Turkey with ARDL Model

Year 2017, Volume: 17 Issue: 2, 51 - 66, 15.06.2017

Prof. Dr. Cüneyt Koyuncu , Tufan Sarıtaş

https://doi.org/10.18037/ausbd.417241

Cited By: 1

Abstract

In this study, short and long term possible relationships between globalization and growth in Turkey were investigated for 1970-2013. In this context, three models for three different growth indicators were established. Firstly, it has been examined whether there is a long-lasting relationship between the series by using ARDL boundary test method. Then, both short and long term coefficients of the series were estimated by using error corrected form of the ARDL Model. Finally, Granger causality test was applied in the context of Toda-Yamamoto Approach. After the analyzes made for three different models; it was found that there was a long-term significant positive correlation between globalization and growth but there was no short term significant correlation between them for each of the three models. In addition, after conducting causality test for three models, no causality relationship between growth and globalization was identified. 

Keywords

Globalization, Economic Growth, Cointegration, Stationarity

References

• Chang, C.P., Lee, C. C., Hsieh, M.C. (2011). Globalization, Real Output and Multiple Structural Breaks, Global Economic Review, 40(4), 421-444.
• Chang, C.P., Berdiev, A.N., Lee, C.C. (2013). Energy Exports, Globalization and Economic Growth: The Case of South Caucasus, Economic Modelling, 33, 333-346.
• Doğan, B., Can, M. (2016). Küreselleşmenin Büyümeye Etkisi: Güney Kore Örnekleminde Eş-bütünleşme Analizi, Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 6(1), 1-24.
• Dollar, D. (1992). Outward – Oriented Developing Economies Really Do Grow More Rapidly Evidence from 95LCDs: 1976-1985, Economic Development and Culturel Change, 40(3), 523-544.
• Dreher, A. (2006). Does Globalization Affect Growth? Evidence From A New Index of Globalization, Applied Econımics, 38(10), 1091-1110.
• Gurgul, H., Lach, L. (2014). Globalization and Economic Growth: Evidence From Two Decedes of Transition in CEE, Economing Modelling, 36, 99-107.
• Hayaloğlu, P., Kalaycı, C., Artan, S. (2015). Küreselleşme Farklı Gelir Grubundaki Ülkelerde Ekonomik Büyümeyi Nasıl Etkilemektedir?, Osmangazi Üniversitesi İİBF Dergisi, 10(1), 119-152.
• Leitao, N. C. (2012). Economic Growth, Globalization and Trade, Management Research and Practise, 4(3), 18-24.
• Lucas, R. E. Jr. (1988). On the Mechanics of Economic Development, Journal of Monetary Economics, 22(1), 3-42.
• Marginean, S., Orastean, R. (2011). Globalization and Economic Crises in European Countries, International Journal of Economics and Finance Studies, 3(1), 209-218.
• Mutascu, M., Fleischer, A. (2011). Economic Growth and Globalization in Romania, World Applied Sciences Journal, 12(10), 1691-1697.
• Osterloh, S. (2012). Words Speak Louder Than Actions: The Impact of Politics on Economic Performans, Journal of Comparative Economics, 40(3), 318-336.
• Peseran, M. H., Shin, Y., Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationship. Journal of Applied Econometrics, 16(3), 289-326.
• Potrafke, N. (2010). Political Cycles And Economic Performance İn OECD Countries: Empirical Evidence From 1951-2006, Public Choise, 150(1-2), 155-179.
• Rao, B. B., Vadlamannati, K. C. (2011). Globalization and Growth in the Low Income African Countries with Extreme Bounds Analysis, Economic Modelling, 28(3), 795-805.
• Rivera Batiz, L. A., Romer, P. M. (1990). Economic Integration and Endogenous Growth (Working Paper No: 3528), The National Bureau of Economic Research, http://www.nber.org/papers/w3528.pdf
• Samimi, P., Jenatabadi, H.S. (2014). Globalization and Economic Growth: Empirical Evidence on the Role of Complementarities, Globalization and Economic Growth, 9(4), 1-7.
• Sarıkaya, M. (2014). Sosyal Küreselleşme ve Büyüme Üzerine Etkisi, Yayınlanmamış Yüksek Lisans Tezi, Mustafa Kemal Üniversitesi Sosyal Bilimler Enstitüsü, Hatay.
• Villaverde, J., Maza, A. (2011). Globalization, Growth and Convergence, World Economy, 34(6), 952-971.
• Yay, T. (2009). Küreselleşme Karşısında Piyasa ve Devlet, Ekonomi Bilimleri Dergisi, 1(1), 1-11.