Economic Growth In Turkey Research Articles

SUSTAINABLE GROWTH THROUGH GREEN ECONOMY: AN ECONOMETRIC ANALYSIS

Objective: In recent years, the growing interest and awareness of environmental issues have once again brought the issue of population growth to the forefront, exerting significant pressure on production. The increased pressure on production and the resultant rise in production have led to a faster trend in consumption. As a natural consequence of both trends, detrimental effects on ecological balance and the environment have begun to emerge. The concept of "green economy" has emerged as an approach to restore the disrupted ecological balance and operationalize this order. This widely spreading concept has begun to generate significant policies at both national and international levels. Method: This study aims to examine the relationship between renewable energy production, consumption, wastewater, and solid waste data, covering the years 1980-2022, using econometric methods to explore the relationship between green economy and economic growth in the context of Turkey. The objective is to analyze the impact of the recent and rapidly increasing transformation towards "green economy" on the long-term trajectory of economic growth in Turkey. Result and Discussion: Based on the findings of the study, it has been determined that, at the 0.05 level of statistical significance, there is no long-term relationship between the variables and economic growth, as well as no long-term significant relationship between any of the variables. When the statistical significance is accepted at the 0.10 level, a significant long-term relationship is identified between the amount of wastewater and renewable energy, with a 1% increase in wastewater leading to a 0.82% increase in renewable energy. Implications: The findings of this study and the transformation towards a green economy, widely covered in the literature, have been recognized in Turkey and an unnamed green transformation movement has begun. As the results of the analysis of the study indicate, the policies introduced for the transition to a green economy and transformation efforts have a positive and significant impact on economic growth in the long term, but the same cannot be claimed for the short term, but in the future, advances in scientific and technological progress and over-specialization will inevitably have positive consequences on global and domestic sustainable development in the short term. Originality/Value: The distinctive feature of this study from similar studies in the literature is that the relationship between the green economy and sustainable growth was analyzed empirically and with five separate econometric models. Recommendations: Turkey needs serious reforms in education in its transition to a green economy. In addition, there is a need for political determination to use environmentally friendly sectors that are more open to innovation and competition, such as renewable energy and green building sectors.

THE IMPACT OF INFLATION TARGETING MONETARY POLICY ON MACROECONOMIC PERFORMANCE OF TURKEY DURING 2002-2022

The main aim of the study is to investigate the impact of inflation targeting (IT) strategy in Turkey during 2002-2022, which was adopted in a three-year period of 2002-2004, on macroeconomic performance (actual inflation, exchange and interest rates) and economic growth of Turkey (in terms of the real GDP). The econometric and empirical investigation of this research focusing on the impact of inflation targeting on the selected macroeconomic variables were carried out by the linear squares method (LSM) regression taking the data of the period after implementation of the monetary policy. At this, the independent variable of inflation targeting was estimated against each chosen macroeconomic variable separately in four different models to catch its linear impact on the changes of these variables over the period after implementation of the strategy. The empirical outcomes demonstrated that inflation targeting monetary policy is strong enough to impact the macroeconomic performance of Turkey in terms of reducing inflation rates, boosting economy by pushing real GDP to grow, stabilize exchange rates and lower the nominal interest rates on deposits.

Effects of Foreign Direct Investment Inflows to Economic Growth: a Case of Turkey

Objective: The purpose of this study is to investigate the effects of Tax Competition for Turkey, as well as the aspects of basic taxes like Personal Income Tax and Corporation Tax and evaluate the results. In this context, the impact of foreign direct investments on economic growth in Turkey is investigated. Theoretical Framework: Theoretically, it is accepted that foreign direct investment will positively affect economic growth. This study investigates the practical implications of this theory for Turkey. Method: International Comparative Analysis and various tables and graphics were used in this study to analyse the variance of Personal Income Tax and Corporation Tax by years. In addition study applies regression analysis on direct foreign inflow and economic growth in Turkey for 1974-2019 period. Results and Discussion: Regression analysis was performed on the time series of foreign capital investments and economic growth. However, it is concluded that foreign capital investments do not positively affect economic growth over the 1974-2019 period since foreign capital investments in Turkey reached their usual level only after 2002. Research Implications: This study concludes that foreign direct investment (FDI) does not always positively affect economic growth for all countries. Originality/Value: The study is original in that it shows that a generally accepted theory may have different results in practice for some countries.

The Relationship between Stock Market-Based Financial Development and Economic Growth: The Case of Turkey

This study aims to examine the effect of financial development on economic growth in the case of Türkiye. Financial development is considered the one of the basic elements of economic development. It provides an important reference to better understand the relationship between financial development and economic growth in Turkey and to predict the effects of economic policies. In the study, quarterly data for the period January 1999 - January 2023 are analysed for the Turkish economy with the help of ARDL (Autoregressive Distributed Lag-ARDL) cointegration methodology. According to the results, it has been seen that the stock market index, which is an indicator of financial development, consumption and net exports has a positive effect on growth. On the other hand, investment has no effect on growth rate and government expenditure has negative effect on growth rate.

Research and Development-Driven Foreign Direct Investment and Its Ramifications on Turkey's Economic Landscape: "A VECM Approach"

The purpose of this study is to empirically investigate the impact of research and development on economic growth in Turkey. Data for this study comes from the popular World Development Indicator spanning the period from 1973 to 2022. The study employed different econometric approaches such as ADF unit root, Granger causality, and VECM. The estimate of the Johansen test revealed that there is a long-run relationship among the variables as the trace test shows two cointegrations while the maximum Eigenvalue Test indicates one cointegration test result. The Granger Causality test indicates that there is a presence of causality, which runs from economic growth to the independent variables. Turkey's diverse economies account for the variations in the estimated findings of the impulse response and variance decomposition. Furthermore, the study's conclusions suggest that the Turkish government boost its R&D spending in order to promote economic expansion. Turkey can achieve sustainable economic development by putting policies in place that reward innovation and technological advancements. The potential for economic growth in the nation can also be increased by encouraging cooperation in R&D projects between the public and private sectors.

The Efficacy of Developments in Agriculture and Industry Sectors on Economic Growth in Turkey: ARDL Approach

One of the oldest economic goals of societies around the world is to increase the welfare level of the society. For this reason, the phenomenon of economic growth has been one of the most studied subjects since history. In this work, the efficacy of production in Turkey's agricultural and industrial sectors on economic growth amongst 1980 and 2022 has been investigated. In addition, inflation and trade deficit data are included as control variables. ARDL bounds test was implemented in the work. Accordingly the outcomes of the work, in the first model, when the share of the agricultural sector in GNP increases by 1%, per capita income decreases by approximately 1.13%. A 1% increment in the inflation rate diminishes per capita income by approximately 0.18%. In the second model, the margin of the industrial sector in GNP has an affirmative efficacy on per capita income. The inflation rate, conversely, has a negatory efficacy on per capita income. When the share of the industrial sector increases by 1%, per capita income increases by approximately 4.5%. A 1% increment in the inflation rate diminishes per capita income by approximately 0.5%. The parameters related to international trade deficit are statistically insignificant.

Cointegration analysis of GDP indicators per capita between the Republic of Azerbaijan and Turkey on purchasing power parity

The article analyses the interrelationships between the main components of socio-economic development levels in Turkey and the Republic of Azerbaijan. The purpose of this work is to construct a cross-country regression model of per capita economic growth in Turkey and the Republic of Azerbaijan and to conduct a cross-country comparative analysis of the main components of inclusive growth under the strong influence of both countries. The aim of this research is to enable empirical study of the joint movement of both indicators, determine cause-effect relationships and co-integration dependence, establish long-term integration relationships, and take necessary steps and measures for a positive outcome. The level of economic development was measured using GDP per capita with purchasing power parity (PPP). The study analyses the dynamic interaction of indicators using data from January 1992 to December 2022. Econometric methodology was employed, including the extended Dickey-Fuller test to detect a single root, and the Granger test. The Johansen test, Error correction model, and ARDL model standard diagnostic tests were used to examine the cointegration relationship. Stationarity, causality, and cointegration tests were conducted on the entire sample at a significance level of 10%.

The impact of stock market development on economic growth in Turkey: ARDL analysis

The stock market has become more significant due to the globalization of financial markets, and there is a widespread perception that it propels economic growth. Nonetheless, some recent research has found that this effect differs throughout countries based on their financial infrastructures and degrees of development. In nations with established financial infrastructure and economic stability, the stock market aids in economic growth; nevertheless, it has no such effect in economies characterized by macroeconomic instability and uncertainty. Based on this, this study used quarterly data from 2006 to 2023 to examine the effects of Turkey's stock market development on economic growth using an autoregressive distributed lag (ARDL) method. The results show that while there was a negative and considerable short-term effect, stock market development in Turkey did not have a long-term detrimental impact on economic growth. According to the findings, for Turkey's stock market to positively impact economic growth, the country's financial system has to be modernized.

The Impacts of Digital Trade on Environmental Quality in Case of Developing Countries

Digital trade (DT) raises the incentives for developing economies, like China, India, Bangladesh, Brazil and Turkey's economic growth, to attain environmental quality, which is assessed by lowering carbon emissions, within the framework of the dual carbon targets. This study investigates the impact of DT development on carbon emissions by empirical means and their heterogeneity using panel data. Regression result shows that DT development considerably lowers the carbon emissions in the surrounding area. Utilizing its influence on upgrading industrial structure, fostering the development of green technologies, and growing economic size, DT can lower regional carbon emissions. The impact of DT on reducing carbon emissions will diminish as trade liberalization rises and carbon intensity declines. The study's conclusions are crucial from a practical perspective to effectively address climate change, achieve the carbon neutrality target, and promote better economic development.

TAX INCENTIVE SCHEMES AND BALANCED REGIONAL ECONOMIC GROWTH IN TURKEY

This study delves into the impact of investment incentives on regional development and economic growth in Turkey. It provides a comprehensive overview of the investment incentive system introduced in 2012, categorizing regions based on development levels and offering various incentives such as tax exemptions, reductions, and social security support. The research investigates the relationship between investment incentives, public expenditures, regional differences, and economic growth. Through a thorough examination, the study aims to understand how the current incentive system addresses regional disparities and promotes balanced economic growth. The literature review explores international perspectives, including China and Italy, providing insights into the effectiveness of tax incentives on R&D investment and macroeconomic performance. The study also analyzes the European Commission's report on tax incentives for venture capital and business angels. The results and discussion section outlines the investment incentive framework in Turkey, emphasizing regional, priority, large-scale, and strategic schemes. The research considers twelve investment categories, each supported by specific incentive measures. The conclusion emphasizes the importance of aligning incentives with regional needs, fostering equitable development, and promoting strategic sectors. It highlights the significance of quasi-tax supports, VAT exemptions, and interest subsidies in encouraging investments. The employment and income tax withholding supports, especially in the 6th region, are recognized for their contribution to reducing unemployment. The study concludes by underscoring the need for continuous evaluation and adaptation of incentive schemes to address evolving economic challenges.

The impact of tax incentives on GDP in Turkey

This article investigates the effectiveness of tax incentives in promoting sustained economic growth in Turkey – a topic marked by ongoing debate and uncertainty. With tax incentives widely employed to stimulate economic activity and attract investments, there is a critical need to assess their impact on the Turkish economy. Amidst challenges faced by the Turkish economy, the research unfolds dual objectives – advocating for tax incentives as economic stimulants while acknowledging concerns about potential reductions in government revenue. The study aims to scrutinize current tax incentive policies, evaluating their success in achieving intended objectives while balancing economic growth with government revenue sustainability. Through a rigorous empirical analysis, the research endeavors to contribute novel insights to the existing knowledge base, shedding light on the intricate relationship between tax incentives and economic growth. The research employs rigorous empirical analysis as its primary methodology. By scrutinizing the intricate relationship between tax incentives and GDP as the main indicator of economic growth, the study seeks to unravel patterns, implications, and potential trade-offs associated with these fiscal policies. The significance of the study extends to the broader discussion on macroeconomic stability, offering valuable insights for evidence-based policymaking on a global scale. As Turkey's strategic position in global trade and economic integration is paramount, understanding the impact of tax incentives becomes pivotal. The study's outcomes may guide not only Turkish policymakers but also those engaged in regional economic partnerships, promoting collective growth and development.

THE IMPACT OF FOREIGN AND NATIVE HUMAN CAPITAL ON TURKEY'S ECONOMIC GROWTH

In this study, the impact of human capital on Turkey's economic growth during 2003-2021 was investigated. For this purpose, the effects of native and foreign labor are examined separately within the framework of the Cobb-Douglas production function. The Johansen cointegration method was used for the analysis. The results of the estimation of the long-run model show that both foreign and native labors have a positive effect on economic growth, with the effect of native labors being larger than the effect of foreign labor. Both native and foreign labor play an essential role in creating the right background for Turkey's economic growth, so native and foreign labor should be used to increase productivity and production.

Coup d'état and economic growth in Turkey: Evidence from ARDL bounds testing procedure

In seven decades of the multiparty democracy period, Turkey has experienced four military coups. Even though the coups are thought to be a cold war phenomenon in the literature, they are still relevant. The failed coup attempt in 2016 reminds us that the military coup is still a critical issue in Turkish democracy and the economy. Interestingly, there is not an adequate amount of empirical research on the political economy of Turkey?s military coup experience. This study?s motivation is to provide empirical evidence for the economic growth-coup nexus literature with a core focus on Turkey, which is a remarkable case in many aspects. For this purpose, we extend an open-economy Cobb-Douglas production function with coups and use the autoregressive distributed lags (ARDL) method for the period 1950 to 2014. According to the study?s empirical findings, coup d??tats negatively affect real GDP in Turkey. Through structural reforms, Turkey should strengthen its democratic institutions to prevent such antidemocratic attempts.

THE IMPACT OF UNEMPLOYMENT AND INFLATION ON ECONOMIC GROWTH IN TUKEY

Introduction: The impact of unemployment and inflation on economic growth in Turkey is considered as an important issue in the economic literature on Turkey. Unemployment and inflation are factors that directly affect economic stability and the welfare of citizens. In this context, it is critical to understand and interpret the effects of unemployment and inflation rates on economic growth and to formulate and implement economic policies in line with the realities. Analyzing Turkey's unemployment and inflation dynamics is a very important issue in this sense. In addition, this concept and data play an important role in providing guidance for policymakers in evaluating economic performance and implementing new economic policies. When today's Turkish economy is evaluated in general terms, it reveals the reality of Turkey, which has suffered serious losses in the last five years, a decrease in purchasing power, an increase in the prices of goods and services and an inflation rate of 150%. Objective: To investigate and determine the effects of unemployment and inflation on economic performance in Turkey within a specified period of time. To establish the relationship between unemployment and inflation on Real Gross Domestic Product in Turkey. Design, Methodology and Approach: The Ordinary Least Squares (OLS) technique was adopted with various diagnostic tests to determine how appropriate the data is for the analysis. The study uses only OLS and Diagnostics to perform the analysis and covers only the period from 1990 to 2021. Results: The result of the diagnostic test shows that the data for the analysis is stationary at level and there are 2 cointegration equations indicating that there is a long-run relationship between GDP, Unemployment and inflation. Conclusion: Unemployment and inflation are positively related to economic growth.

Does Defense Spending Increase Economic Growth in Turkey? Revisited with Extended ARDL Approach

Savunma harcamaları, ülkenin varlığını sürdürebilmesi ve içeriden ve dışarıdan gelebilecek tehditlere karşı koyabilmek için yapılması gereken en önemli harcama kalemlerinden biridir. Savunma sanayine yapılan harcamalar, ileri teknoloji gerektiren ürünlerin gelişmesini ve kaynakların ülkede kalmasını sağlayarak ülke ekonomisinde katma değer meydana getirmektedir. Bu makalenin amacı Türkiye de savunma harcamaları – ekonomik büyüme ilişkisini, genişletilmiş ARDL yöntemi ile ortaya koymaktır. Bağımlı değişkenin ekonomik büyüme, bağımsız değişkenlerin savunma harcamaları ile ihracat olduğu çalışmada, değişkenlerine ait veriler 1961 – 2022 yıllarını kapsayacak şekilde ele alınmıştır. Sonuçlar, Türkiye’nin savunma harcamaları ve ihracat değişkeni ile milli gelir artış hızı arasında uzun dönemli “pozitif” bir ilişkinin olduğu, tespit edilmiştir. Bu durum savunma harcamalarında maliyeti düşürmeye odaklanmanın ekonomik büyümeye fayda sağlayabileceğini göstermektedir. Değişkenler arasındaki nedensellik ilişkilerini ortaya koymak için Hacker ve Hatemi-J (2006) Simetrik Nedensellik Testi yapılmıştır. Nedensellik testi sonuçlarına göre savunma harcamalarından ekonomik büyümeye doğru tek yönlü, ihracat ile ekonomik büyüme arasında ise çift yönlü nedensellik ilişkisi tespit edilmiştir. Bu bulgulara dayanarak, makale politika yapıcılar için bazı kritik öneriler sunmaktadır.

Neo-klasik Yaklaşım Kapsamında Türkiye ve Seçilmiş Dünya Ülkelerinin Savunma Harcamalarının Ekonomik Büyüme Üzerine Etkisi: Panel Veri Analizi

In this study, the relationship between defense expenditures and economic growth of Turkey and the top 15 countries that spend on defense was tested using the panel data analysis method for the years 2000–2021. In the study, a model was established between defense expenditures and economic growth. As a result of the examination of the established models, it was seen that the effect between defense expenditures and economic growth was negative. Its negative direction shows that the Neo-classical view is dominant. When the variable coefficients of the countries are examined, it is seen that the defense expenditures made for the Model reduce the economic growth for 12 countries, but it is understood that the defense expenditures made in the USA, Russia, Saudi Arabia and Israel affect the economic growth positively due to the development of these countries and their leadership in the arms trade. This positivity causes an increase in employment. This study is derived from İslam Fatih KOÇAK's thesis titled Validity of Benoit Hypothesis for Selected World Countries and Turkey: Panel Data Analysis.

Türkiye’nin Ekonomik Büyümesinde Sağlık Harcamalarının Etkisi: Fourier Birim Kök ve Eşbütünleşme Testinden Kanıtlar

Beşerî sermayenin ana unsurlarından biri olan sağlığın ekonomik büyüme üzerindeki etkisine ilişkin çalışmalar önemini korumaktadır. Bu çalışmada, Türkiye’de 1975-2021 dönemi esas alınarak sağlık harcamaları ve sağlık personeli sayısının ekonomik büyüme üzerindeki etkisi belirlenmeye çalışılmıştır. Çalışmada öncelikle değişkenlerin durağanlığını test etmek amacıyla amacıyla yumuşak geçişleri dikkate alan Fourier KPSS ile standart KPSS durağanlık testleri kullanılmıştır. Serilerin birinci farkları alındıktan sonra durağanlıkları sağlanmış ve ardından Fourier SHIN ve SHIN testleri ile eşbütünleşme ilişkisinin varlığı sınanmıştır. Uzun dönem katsayı tahmini için DOLS eşbütünleşme katsayı tahmincisi kullanılmıştır. Analizin son kısmında değişkenler arasındaki nedensellik ilişkisinin tespit edilmesi amacıyla Toda-Yamamoto (1995) nedensellik tespiti yapılmıştır. Analizde dâhil edilen sağlık göstergelerinin ekonomik büyümeyi pozitif etkilediği tespit edilmiştir. Ayrıca, ekonomik büyüme ile sağlık harcamaları arasında çift yönlü bir nedensellik bulgusuna ulaşılmıştır. Büyüme ve kalkınma hedeflerine ulaşmayı sağlayan sağlık alanındaki yatırımların politika yapıcılar tarafından artırılması önerilmektedir. Anahtar Kelimeler: Sağlık Göstergeleri, Ekonomik Büyüme, Fourier KPPS, Fourier SHİN JEL Sınıflandırması: E24, O15, O40

Evaluating the Efficacy of Monetary Policy in Driving Economic Growth in Turkey

This paper examines the efficacy of monetary policy in fostering output growth in Turkey by analyzing annual time-series data sourced from the Central Bank of the Republic of Turkey (CBRT) spanning from 2005 to 2023. The research employs the Autoregressive Distributed Lag (ARDL) bounds testing procedure. The findings reveal that money supply, considered an indicator of monetary policy in the context of this study, exerts a positive and statistically significant influence on output growth in Turkey in both the short and long term. Additionally, government expenditure has a positive and statistically significant impact on growth in the long term, albeit weaker than the impact of money supply. Lastly, in the long term, inflation negatively affects growth, with statistical significance observed at the 10% level.

The causal relationship between foreign direct investments, Trade openness and economic growth in Turkey

The causal relationship between foreign direct investments, Trade openness and economic growth in Turkey

The asymmetric impact of real exchange rate misalignment on growth dynamics in Turkey

Earlier empirical studies examining the impact of exchange rate misalignment on economic growth were based on a symmetric approach, assuming that undervaluation and overvaluation affect economic growth symmetrically. However, recent empirical studies have shown that exchange rate misalignments asymmetrically affect economic growth. This study, therefore, examines the asymmetric effects of real exchange rate misalignments on economic growth in Turkey. The asymmetric effects of the non-linear autoregressive distributed lag model show that both overvaluation and undervaluation impede economic growth in Turkey. The study recommends that Turkey should maintain a market-based exchange rate policy to reduce currency misalignment. The study also recommends that the central bank of Turkey should intervene in the foreign exchange market for a short-term to mitigate the excessive distortions in exchange rates and avoid inefficiencies in resource allocation.