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The Impact of Globalization with its Different Aspects on Economic Growth: The Case of Turkey

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  • Hamza CESTEPE

    (Zonguldak Bulent Ecevit University Faculty of Economics and Administrative Sciences Department of Economics Zonguldak Turkiye)

  • Havanur Ergun Tatar

    (Bartin University Faculty of Economics and Administrative Sciences Department of Economics Bartin Turkiye)

  • Serdar Erdogan

    (Trakya University Uzunköprü School of Applied Sciences Department of Accounting and Financial Management Edirne Turkiye)

Abstract

As a multi-dimensional concept that affects many other factors globalization has a profound impact on the economy as well. It is possible to argue that developing countries are more affected by globalization than others. In this study the impact of globalization on the various aspects of economic growth is analyzed empirically for Turkey a developing country. The ARDL Bounds Test was applied as an econometric methodology using the dataset period between 1970-2018 for Turkey. This study used economic social political and overall globalization indices to measure globalization. The results show that social economic and political globalization affect economic growth positively whereas the overall globalization index affects it negatively in the long run. The ARDL Bounds Test results show that the utilized variables in the study are co-integrated in the long run. In fact there is an economic relationship between the variables.

Suggested Citation

  • Hamza CESTEPE & Havanur Ergun Tatar & Serdar Erdogan, 2023. "The Impact of Globalization with its Different Aspects on Economic Growth: The Case of Turkey," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-2), pages 717-743, December.
    • Handle: RePEc:ist:journl:v:73:y:2023:i:2:p:717-743
    DOI: 10.26650/ISTJECON2023-1248345
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    More about this item

    Keywords

    Globalization Economic growth Turkey ARDL bounds test JEL Classification: F43 F62 O47;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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