EXPORTS AND ECONOMIC GROWTH: A SECTORAL ANALYSIS FOR TURKEY

Abstract

The aim of this study is to examine the relationship between exports and the industrial production index for economic growth by employing the Granger causality test for the total manufacturing sector and Turkey’s top 10 exported goods over the period 2002:01 to 2012:05. According to our findings, there is evidence to support export-led growth for basic metals, chemical products, and fabricated metal products in the long-run and a unidirectional causality relationship was found from economic growth to exports for electrical machinery and apparatus both in the short and long-run. Moreover, a pattern of growth-led exports is also valid for chemical products in the short-run.

Keywords

• Export-led growth, Granger causality test, Manufacturing sectors

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