The Realtionship between Political Instability and Economic Growth in Turkey: A Causality Analysis

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Şanlısoy S.

BILIG, no.92, pp.85-114, 2020 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Publication Date: 2020
  • Doi Number: 10.12995/bilig.9204
  • Journal Name: BILIG
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Index Islamicus, Linguistic Bibliography, Linguistics & Language Behavior Abstracts, MLA - Modern Language Association Database, Political Science Complete, Sociological abstracts, Worldwide Political Science Abstracts, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.85-114
  • Keywords: Political instability, economic growth, Hacker-Hatemi-J Causality Test, Hatemi-J Asymmetric Causality Test, UNCERTAINTY, INVESTMENT, POLICY
  • Dokuz Eylül University Affiliated: Yes

Abstract

The aim of this study is to analyze the existence of the relationship between the political instability and economic growth for the period between 1987 and 2015 in the Turkish economy. According to results of the symmetric and asymmetric causality tests the evidence for the existence of the positive shock effects over the political instability caused by the positive shocks in the economic growth has been achieved in contradistinction to the literature. This situation can be explained either through the conflicts of interests within the frame of distribution relationships and through the attempts of rival countries to weaken the Turkey within the frame of geopolitical and geostrategic importance she has. From this point of view it can be expressed that it is very important for reconciliation and tolerance to be hegemon in the political field and the existence of public organization that maintain a firm stand against external powers to actualize a faster growing and developped Turkey. A new balance of power can be formed in which the Turkey take a leading role regionally when these facts are combined with the policies that eliminate the structural problems of the Turkish economy.