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The Relationship Between the Manufacturing Industry and Economic Growth in Turkey

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  • Övgü Alıcı

    (Çankaya University, Turkey)

  • Dilek Temiz Dinç

    (Çankaya University, Turkey)

  • Aytaç Gökmen

    (Çankaya University, Turkey)

Abstract

The aim of this paper is to review the 1980-2020 periods, with manufacturing exports in Turkey to investigate whether there is a causal relationship between economic growth and the manufacturing industry. The relationship between manufacturing industry exports and economic growth is analyzed econometrically. A positive correlation has been determined from co-integration analysis in the long run, manufacturing industry exports to economic growth. The Granger causality test applied determined that there is a one-way causality relationship running from manufacturing industry exports to growth in the short run. To support the Granger causality test, the Toda-Yamamoto causality test has also been found to have a one-way causality relationship from manufacturing industry exports to economic growth. After the causality tests, in order to determine the sign of the impact, the stationary series were tested and the Least Squares (OLS) method was applied for the econometric model and the result of the positive effect of the manufacturing industry exports on economic growth was reached.

Suggested Citation

  • Övgü Alıcı & Dilek Temiz Dinç & Aytaç Gökmen, 2022. "The Relationship Between the Manufacturing Industry and Economic Growth in Turkey," International Journal of Applied Management Sciences and Engineering (IJAMSE), IGI Global, vol. 9(1), pages 1-15, January.
    • Handle: RePEc:igg:jamse0:v:9:y:2022:i:1:p:1-15
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