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A Re-Examination of Kaldor’s Engine-of-Economic Growth Hypothesis for the Turkish Economy

Author

Listed:
  • Rahmi Yamak

    (Karadeniz Technical University)

  • Havvanur Feyza Erdem

    (Karadeniz Technical University)

  • Sinem Koçak

    (Karadeniz Technical University)

Abstract

The purpose of this study is to re-examine the validity of Kaldor’s engine-of-economic growth hypothesis (1966) for the Turkish economy in the context of time series analyses. The data used in this study are quarterly and cover the period of 1998:Q1-2015:Q4. The Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration was used to investigate the long-run dynamic relationship between industrial and non-industrial aggregate outputs. The results identify the long-run relationship between industrial and non-industrial economic performance. The Toda-Yamamoto approach to Granger causality test was employed to detect the causal links between industrial output and non-industrial aggregate output. Causality test results also support the causal implication of the engine-of-growth hypothesis for the case of Turkey.

Suggested Citation

  • Rahmi Yamak & Havvanur Feyza Erdem & Sinem Koçak, 2016. "A Re-Examination of Kaldor’s Engine-of-Economic Growth Hypothesis for the Turkish Economy," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 347-357, October.
    • Handle: RePEc:dug:actaec:y:2016:i:4:p:347-357
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3334/3464
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    References listed on IDEAS

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    Cited by:

    1. Bokosi, Fanwell Kenala, 2022. "The Effects of Industrialisation on Economic Growth: Panel data evidence for SADC countries," African Journal of Economic Review, African Journal of Economic Review, vol. 10(3), June.

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