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Türkiye Ekonomisinde Finansal Serbestleşme Döneminde Uluslararası Sermaye Girişi - Büyüme İlişkisi
[The Relationship Between the International Capital Flows and Economic Growth After the Financial Liberalization in Turkey]

Author

Listed:
  • Söylemez, Arif Orçun
  • Yılmaz, Ahmet

Abstract

This paper statistically investigates the economic growth – international capital nexus in Turkey. Firstly, the descriptive similarities between the empirical distributions of the economic growth and international capital inflows time series in Turkey are reported and the equality of the distributions of these two time series is formally tested. It is shown that the equality of the distributions of these two time series cannot be rejected. Secondly, the causality between the growth and capital inflows is questioned. Results indicate that the capital inflows Granger cause growth in Turkey. Finally, with a model allowing for dynamic interaction between growth and capital inflows, it is shown that the variations in Turkish economic growth can be explained to a high degree by the shocks to the international capital inflows. These findings are indicative for two things: (i) Turkish economic growth became extremely dependent on the international capital inflows and that calls for a need to diversify the sources that Turkey finances her growth and (ii) for the sake of sustainable and low-volatility growth, Turkey has to restructure her growth financing.

Suggested Citation

  • Söylemez, Arif Orçun & Yılmaz, Ahmet, 2012. "Türkiye Ekonomisinde Finansal Serbestleşme Döneminde Uluslararası Sermaye Girişi - Büyüme İlişkisi [The Relationship Between the International Capital Flows and Economic Growth After the Financial ," MPRA Paper 52271, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52271
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic Growth; International Capital; Kolmogorov-Smirnov Test of Equal Probability Distribution; Granger Causality; Toda-Yamamoto Procedure; Seemingly Unrelated Regression;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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