EXPORTS AND ECONOMIC GROWTH: A SECTORAL ANALYSIS FOR TURKEY

Year 2012, Volume: 4 Issue: 2, 255 - 265, 01.12.2012

Sevcan Gunes Hacer Simay Karaalp

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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