Research Article

A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION

Volume: 6 Number: 3 September 30, 2019
Journal of Economics Finance and Accounting Cover
Journal of Economics Finance and Accounting
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A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION

Abstract

Purpose - The adverse circumstances which have been experienced in Turkey’s economy recently are attributed to different justifications. One of these is the case defined as ‘Dutch Disease’ in literature. Dutch disease is an economic term for the negative consequences that can arise from a spike in the value of a nation’s currency. Within this context, it has been desired to test the validity of ‘Dutch Disease’ in Turkey’s economy for the 2002-2018 period. The case that there is no research which is put forward recently or made with a similar method makes the study different from the others.

Methodology - In the study, it is used the annual data belonging to the variables of Consumer Price Inflation (CPI) and Imports between the years 2003-2018. Empirical analysis has been executed by using SPSS (22) Pearson’s Test technique and Regression Analysis.

Findings- According to the obtained findings, contrary to what is alleged, there is no connection of the adverse circumstances which have been experienced in Turkey’s economy recently to ‘Dutch Disease’.

Conclusion- For the Dutch Disease to be able to occur, the currency used as medium of exchange is required to be convertible. Because the national currencies of the developing countries such as Turkey are not convertible, the national currency appreciates only within the boundaries of the country. The decrease of the production in Turkey is associated with imports not becoming cheaper but on the contrary becoming more expensive.

Keywords

References

  1. Adenauer, I., Vagassky, L. (1998). Aid and the Real Exchange Rate: Dutch Disease Effects in African Countries, Intereconomics: Review of European Economic Policy. 33(4):177-185.
  2. Akça, E.E., Bal, H. (2017). International Labor Income and Dutch Disease: A Panel Data Analysis for Selected Countries, Eskişehir Osmangazi University Journal of Economics and Administrative Sciences. 12(2):49- 64.
  3. Akçacı, T., Karaata, A. (2014).The Paradoxical Effect of International Funds in Turkey: Dutch Disease, SESSION, International Conference On Eurasian Economies.
  4. Altınok, S., Çetınkaya, M. (2003). Development and Devaluation in Turkey Applications And Results, Selcuk University Journal of Social Sciences Institute. 9, 47-64.
  5. Arı, A., Özcan, B. (2012). Dutch Disease: An Application on Developing Countries, Socioeconomics. 2, 153-172.
  6. Balaylar, A.N. (2011). The Relationship of Real Manufacturing Industry, Socioeconomics. 2, 137-160.
  7. Başoğlu, U. (2000).Financial Liberalization and International Portfolio Investment, Balıkesir University Institute of Social Sciences Journal. 3(4):88-89.
  8. Botta, A., Godin, A., Missaglia, M. (2015). Finance, Foreign Direct Investment, and Dutch Disease: The Case of Colombia, Levy Economics Institute Working Paper, 15-853.

Details

Primary Language

English

Subjects

Business Administration

Journal Section

Research Article

Authors

Publication Date

September 30, 2019

Submission Date

June 21, 2019

Acceptance Date

September 18, 2019

Published in Issue

Year 2019 Volume: 6 Number: 3

DOI

https://doi.org/10.17261/Pressacademia.2019.1114

IZ

https://izlik.org/JA67XE66XK

Cite

RIS / Bibtex
APA
Karacan, R., Cengiz, V., & Yardim Kilickan, Z. (2019). A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION. Journal of Economics Finance and Accounting, 6(3), 159-169. https://doi.org/10.17261/Pressacademia.2019.1114
AMA
1.Karacan R, Cengiz V, Yardim Kilickan Z. A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION. JEFA. 2019;6(3):159-169. doi:10.17261/Pressacademia.2019.1114
Chicago
Karacan, Rıdvan, Vedat Cengiz, and Zisan Yardim Kilickan. 2019. “A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION”. Journal of Economics Finance and Accounting 6 (3): 159-69. https://doi.org/10.17261/Pressacademia.2019.1114.
EndNote
Karacan R, Cengiz V, Yardim Kilickan Z (September 1, 2019) A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION. Journal of Economics Finance and Accounting 6 3 159–169.
IEEE
[1]R. Karacan, V. Cengiz, and Z. Yardim Kilickan, “A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION”, JEFA, vol. 6, no. 3, pp. 159–169, Sept. 2019, doi: 10.17261/Pressacademia.2019.1114.
ISNAD
Karacan, Rıdvan - Cengiz, Vedat - Yardim Kilickan, Zisan. “A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION”. Journal of Economics Finance and Accounting 6/3 (September 1, 2019): 159-169. https://doi.org/10.17261/Pressacademia.2019.1114.
JAMA
1.Karacan R, Cengiz V, Yardim Kilickan Z. A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION. JEFA. 2019;6:159–169.
MLA
Karacan, Rıdvan, et al. “A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION”. Journal of Economics Finance and Accounting, vol. 6, no. 3, Sept. 2019, pp. 159-6, doi:10.17261/Pressacademia.2019.1114.
Vancouver
1.Rıdvan Karacan, Vedat Cengiz, Zisan Yardim Kilickan. A DIFFERENT APPROACH TO THE RELATION BETWEEN IMPORTS AND INFLATION FOR TURKEY: DUTCH DISEASE ILLUSTRATION. JEFA. 2019 Sep. 1;6(3):159-6. doi:10.17261/Pressacademia.2019.1114

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