TRADE LIBERALIZATION AND ENDOGENOUS GROWTH - SOME EVIDENCE FOR TURKEY

GHATAK S., MILNER C., UTKULU U.

ECONOMICS OF PLANNING, vol.28, pp.147-167, 1995 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 28
  • Publication Date: 1995
  • Doi Number: 10.1007/bf01263635
  • Journal Name: ECONOMICS OF PLANNING
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, EconLit, zbMATH
  • Page Numbers: pp.147-167
  • Dokuz Eylül University Affiliated: Yes

Abstract

This paper examines the impact of trade liberalisation on the long-run economic development as measured by the real GDP per capita in Turkey. Based on the 'endogenous' growth theory, we employ bivariate and multivariate cointegration analyses to test the long-run relationship among the relevant variables. Results for Turkey suggest a stable, joint long-run relationship among real GDP per capita, an index of trade liberalisation, human and physical capital in accordance with the 'endogenous' growth theory. Statistically significant error-correction terms provide further evidence that those variables are indeed cointegrated. This also implies causal effects.