IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v57y2010i4p447-469id200.html
   My bibliography  Save this article

Endogeneity of the Natural Rate of Growth: An Application to Turkey

Author

Listed:
  • Senay Acikgoz
  • Merter Mert

Abstract

The purpose of this paper is to examine the sensitivity of the Turkish economy’s natural rate of growth to the actual rate of growth, covering the period 1980-2008. To determine the reason why the natural rate of growth is endogenous, the long-run and the causality relationships between real gross domestic product and each of the production factors (labour force and physical capital stock) are investigated with the bounds test. The natural rate of growth for the Turkish economy is found to be at 4.97 percent and the actual rate of growth in boom periods is approximately 35.6 percent; indicating endogeneity. However, according to the causality test results, the endogeneity of the natural rate of growth may be attributed to the total factor productivity rather than the labour force and physical capital stock. This result is important and the debate on this subject may lead to further studies. Key words: The natural rate of growth, The endogeneity of the natural rate of growth, ARDL approach, Causality tests.JEL: O40, E10, E23, C22.

Suggested Citation

  • Senay Acikgoz & Merter Mert, 2010. "Endogeneity of the Natural Rate of Growth: An Application to Turkey," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(4), pages 447-469.
    • Handle: RePEc:voj:journl:v:57:y:2010:i:4:p:447-469:id:200
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/200/193
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    The natural rate of growth; The endogeneity of the natural rate of growth; ARDL approach; Causality tests;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:57:y:2010:i:4:p:447-469:id:200. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.