Abstract
The Relationship Between Trade Opennes and Economic Growth; The Case Of Turkey
For many years, the evaluation of the concept of trade openness in the context of economic growth has been the focus of attention in economics literature. In this study, an empirical approach is presented to evaluate the relationship between economic growth (LGDP) and trade openness (OPENNESS) in Turkey. In the study, the causality relationship between economic growth and outward trade openness was examined using Johansen (1988) and Johansen and Juselius (1990) cointegration analysis with annual frequency data for the period 1980-2016 in Turkey. According to results of study, economic growth and trade openness is a cointegration vector, that is, there is a long term relationship between both variables. An Error Correction Model (ECM) was created for the analysis of short-term relationships. Based on the error correction model, a one-way causality relationship from outward trade openness to economic growth is obtained.
Keywords
Trade opennes, economic growth, cointegration
