A Case Study of Turkey
A Case Study of Turkey
Abstract
This report examines the intricate relationship between economic development and
export consumption in Turkey, utilizing a nonparametric causality-in-quantiles
approach. The study spans from 1960 to 2018, highlighting the nonlinear dynamics
and sector-specific variations in the export-growth nexus. Findings suggest that
economic growth influences export growth, particularly at low and high quantile
ranges, emphasizing the need for tailored policy interventions.Taylor & Francis Online
1. Introduction
The relationship between economic development and export consumption has been
a focal point of economic research, with varying perspectives on causality and
impact. In Turkey, a country characterized by its strategic location and diverse
economy, understanding this relationship is crucial for formulating effective
economic policies. Traditional linear models have often overlooked the complexities
inherent in this relationship. This study employs a nonparametric causality-in-
quantiles approach to capture the nuanced interactions between economic growth
and export consumption.
2. Literature Review
Previous studies have explored the export-led growth hypothesis, suggesting that
increased exports drive economic growth by enhancing economies of scale, adopting
advanced technology, and greater capacity utilization. However, these studies often
assume linear relationships, which may not accurately reflect the complexities of the
real world. Recent advancements in econometric techniques, such as the
nonparametric causality-in-quantiles approach, allow for a more nuanced
understanding of the export-growth nexus, accommodating potential nonlinearities
and varying effects across different levels of export growth.国际货币基金组织电子
3. Methodology
The results also underscore the need for targeted policy interventions that consider
the varying impacts of economic growth on export consumption across different
sectors and levels of export activity. Policies aimed at fostering economic growth
should be designed to stimulate export growth, particularly during periods of low or
high export activity, to maximize the benefits of export consumption on economic
development.
5. Conclusion
This study provides valuable insights into the complex relationship between
economic development and export consumption in Turkey. By employing a
nonparametric causality-in-quantiles approach, the research captures the nonlinear
dynamics and sector-specific variations in the export-growth nexus. The findings
emphasize the importance of tailored policy interventions that consider the diverse
impacts of economic growth on export consumption across different levels of export
activity. Future research should further explore these dynamics, incorporating
additional variables and employing advanced econometric techniques to enhance
the understanding of the export-growth relationship.Taylor & Francis Online