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Trade Liberalization and Balance of Payments Constrained Growth
in Turkey (1980-2018)
Nader Al zabadi
Tareq Amro
Keywords: Trade liberalization, balance of payments, Turkey
Published 2024-01-01
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Abstract : This study tried to examine the balance of payments constrained growth, employed Autoregressive Distributed lag bound test (ARDL) approach to test the Turkey exports and imports functions via Bound test. Descriptive statistics show that Turkey trade balance suffers from continuous trade deficit over study period (1980-2018), share of total trade to GDP still in low level and the average over study period (33.55%). Estimation show that the income elasticity of demand for imports is 1.2, while the income elasticity demand for exports is 1.66, Thirlwall’s weak version confirmation that the predicted growth is higher than actual growth ( Exporting without growing) , Thirlwall’s strong version show that predicted growth close to actual growth ( growing with integrating).
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