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An analysis of the interaction among savings, investments and growth in Turkey

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  • Nurhan Yenturk
  • Burc Ulengin
  • Ahmet Cimenoglu

Abstract

Turkey has been implementing tight fiscal and monetary policies for years. These policies rely on the basic understanding that savings trigger growth and investments. However there are alternative theoretical discussions and empirical findings related to the interaction among these variables. In this study, while one of the purposes is to analyse the interaction among these variables for the Turkish case, the other is to try to bring an insight for other developing countries for the issues such as data production, econometric analysis, and as well as making policy suggestions in line with the evidence from the Turkish case. The findings of this study show that, it is the growth that induces both savings and investments. Hence, it is necessary to question policies that assume it is the savings triggering growth and investments.

Suggested Citation

  • Nurhan Yenturk & Burc Ulengin & Ahmet Cimenoglu, 2009. "An analysis of the interaction among savings, investments and growth in Turkey," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 739-751.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:739-751
    DOI: 10.1080/00036840601019000
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    Cited by:

    1. World Bank, 2011. "Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report," World Bank Publications - Reports 12264, The World Bank Group.
    2. Petra Maresova & Blanka Klimova & Kamil Kuca, 2016. "Financial and legislative aspects of drug development of orphan diseases on the European market -- a systematic review," Applied Economics, Taylor & Francis Journals, vol. 48(27), pages 2562-2570, June.
    3. Gutiérrez-Portilla, Paula & Maza, Adolfo & Villaverde, José, 2019. "A spatial approach to the FDI-growth nexus in Spain: Dealing with the headquarters effect," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    4. Savaş ÇEVİK, 2015. "Domestic Saving and Tax Structure: Evidence from Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(23).
    5. Chor Foon Tang & Soo Y. Chua, 2012. "The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples," Applied Economics, Taylor & Francis Journals, vol. 44(32), pages 4173-4185, November.

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