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Trade liberalisation and endogenous growth: Some evidence for Turkey

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Abstract

This paper examines the impact of trade liberalisation on the long-run economic development as measured by the real GDP per capita in Turkey. Based on the ‘endogenous’ growth theory, we employ bivariate and multivariate cointegration analyses to test the long-run relationship among the relevant variables. Results for Turkey suggest a stable, joint long-run relationship among real GDP per capita, an index of trade liberalisation, human and physical capital in accordance with the ‘endogenous’ growth theory. Statistically significant error-correction terms provide further evidence that those variables are indeed cointegrated. This also implies causal effects.

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Authors and Affiliations

  1. University of Leicester, Leicester, U.K.

    Subrata Ghatak & Utku Utkulu

  2. Loughborough University, U.K.

    Chris Milner

  3. Dokuz Eylul University, Izmir, Turkey

    Utku Utkulu

Authors
  1. Subrata Ghatak
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  2. Chris Milner
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  3. Utku Utkulu
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Ghatak, S., Milner, C. & Utkulu, U. Trade liberalisation and endogenous growth: Some evidence for Turkey. Econ Plann 28, 147–167 (1995). https://doi.org/10.1007/BF01263635

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