Trade Openness, Financial Development, and Economic Growth in Turkey: Linear and Nonlinear Causality Analysis
This paper aims at empirically investigating the direction of causality among trade liberalization, financial development, and economic growth in Turkey. By employing monthly data for the period January, 1989- November, 2007, both linear and nonlinear causality approaches indicate that (i) there is bi-directional causality between economic growth and trade openness, (ii) economic growth causes financial development, and (iii) financial development leads to trade liberalization. Thereby, linear and nonlinear approaches confirm strong causal linkages among financial development, trade openness, and economic growth in Turkey. These results partially imply that economic growth depends upon trade liberalization through external finance in Turkey which has been experiencing capital account liberalization since 1989
Year of publication: |
2014
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Authors: | KAR, Muhsin ; NAZLIOGLU, Saban ; AGIR, Huseyin |
Published in: |
Journal of BRSA Banking and Financial Markets. - Bankacılık Düzenleme ve Denetleme Kurumu. - Vol. 8.2014, 1, p. 63-86
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Publisher: |
Bankacılık Düzenleme ve Denetleme Kurumu |
Subject: | Trade Openness | Financial Development | Economic Growth | Causality | Turkey |
Saved in:
freely available
Extent: | application/pdf |
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Type of publication: | Article |
Classification: | F41 - Open Economy Macroeconomics ; E44 - Financial Markets and the Macroeconomy ; O43 - Institutions and Growth ; C19 - Econometric and Statistical Methods: General. Other |
Source: |
Persistent link: https://www.econbiz.de/10010960382