An Empirical Evaluation of the Relationship between Trade Openness and External Debt: Turkish Case

International Econometric Review -Cilt 6, Sayı 1
Sayfalar: 42-58

Yazarlar

Özlem Ayvaz Kızılgöl

Erciyes University, Turkey

Evren İpek

Erciyes University, Turkey

Özet

Trade liberalization has been one of the most important structural reforms implemented in developing countries since 1980s. Trade openness, defined as the elimination of restrictions on international trade, is expected to stimulate economic growth by increasing efficiency in resource allocation. However, empirical evidence on the relationship between trade openness and economic outcomes presents mixed results. This study examines the relationship between trade openness and external debt for Turkey using annual data for the period 1980-2011. The results of the cointegration analysis suggest that trade openness and external debt are cointegrated in the long-run. Furthermore, Granger causality analysis reveals that there is a unidirectional causal relationship running from trade openness to external debt.

Anahtar Kelimeler

Trade opennessexternal debtcointegrationGranger causalityTurkey

JEL Sınıflandırması

F13F34H63

DOI

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Dergi Bilgileri

Dergi Adı
International Econometric Review
Cilt / Sayı
6 / 1
Yayın Tarihi
Aralık 2024