The Relationship Between Growth and Foreign Trade in Turkey

Bc. Muhammet koray Koran

Master's thesis

Abstract:

Besides the significant importance of foreign trade in international economic actions, perhaps its main importance is its close link with the macro and microeconomic structure in a country. On the one hand, foreign trade is an important cause that can lead to many important economic consequences and therefore is a tool. On the other hand, foreign trade is an important result and one of the objectives of economic policyIn the first part of the study contains theoretical information about Turkey’s foreign trade history and its relationship between economic growth. The second part contains a variety of econometric methods about the selected time series.This empirical report analyses the relationship between exports, imports and economic growth (represented GDP) using data on Turkey's annual time series for the period 1980-2018. A variety of econometric approaches are used in the analysis, such as ADF unit root test, Johansen cointegration test, Vector Error Correction Model (VECM). The results of this analysis show that economic growth is positively affected by exports and imports in long term.In result, the Johansen Cointegration Test indicates the existence of a long-term relationship between international trade and economic development. There is a long-term and collaborative relationship between exports, imports and GDP.

Keywords

economic growth, foreign trade in turkey, foreign trade

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 30. 11. 2020

Obhajoba závěrečné práce

• Vedúci: prof. Ing. Mansoor Maitah, Ph.D. Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / odbor:
Economics and Management / Economics and Management