This book consists of the four essays treating the macroeconomic role of the trade openness. In the first essay, we have explored the trade openness-human development nexus by employing VECM in the period 1990-2017. The second chapter employs ARDL to display the evidence on the trade openness-education nexus. However, the second chapter was looking for the answer whether or not the better education can contribute to the trade openness. In the third chapter we have explored the link between trade openness and economic growth while employing the VECM model, and lastly we have explored the link between one of the fastest growing industries in the World (tourism industry) and trade openness. The research aims to give an important insight for the key policy makers in Turkey. It is suggested that in order to increase the trade openness, the policy makers need to make a necessary effort to promote the education and tourism that will lead economic growth and better statistics in terms of HDI.
Table of Contents
INTRODUCTION
THE LINK BETWEEN TRADE OPENNESS AND HUMAN DEVELOPMENT IN TURKEY
TRADE OPENNESS AND EDUCATION: EVIDENCE FROM TURKEY
APPLYING VECM TO ESTIMATE THE TRADE OPENNESS – GROWTH NEXUS IN TURKEY
DOES TRADE OPENNESS INFLUENCE TOURISM INDUSTRY IN TURKEY: AN ARDL APPROACH
CONCLUSION
Objective and Research Scope
This book explores the macroeconomic role of trade openness in Turkey by examining its relationship with human development, education, economic growth, and the tourism industry through four distinct empirical essays. Utilizing advanced econometric models such as VECM and ARDL, the work aims to provide policy makers with evidence-based insights into how promoting specific sectors can drive long-term economic prosperity and trade performance.
- The impact of trade openness on human development (HDI) in Turkey.
- The causal link between educational attainment and trade liberalization.
- Estimation of the trade openness-growth nexus using VECM models.
- The bidirectional relationship between the tourism industry and trade openness.
- Policy recommendations for fostering economic growth and HDI improvement.
Excerpt from the Book
INTRODUCTION
The empirical research to date in general explores the link between trade liberalization and economic growth in the case of both, developed and developing countries. Most of the authors agree on the positive link between the variables of interest. This is since, outward-oriented economies consistently have higher growth rates compared to inward-oriented economies and thus tend to have a greater ability to catch up to leading technologies of the rest of the world. The most commonly used proxy measure of trade openness to date is the sum of exports and imports of goods and services divided by GDP. However, some of the authors have criticized these measures. In addition, most of the papers to date, analyze the macroeconomic role of the terms of trade by employing the regression analysis. This analysis is commonly used to explore whether or not one variable depends on other variables. However, it does not necessarily imply causation i.e. even though the regression analysis gives the evidence on the existence of the relationship between two variables, this is not enough evidence to prove the causality or the direction of the influence. In addition, it is important to emphasize that the macroeconomic role of trade openness is not explored quite intensively in the case of Turkey what was the motivation to conduct this research. This research aimed to fill in the gap in literature, by first, using the most recent data on the variables of interest. Besides that, two different measures of the trade openness are employed in order to test whether or not the results are sensitive to the selection of the proxy variable.
Summary of Chapters
INTRODUCTION: Provides an overview of the motivation behind the research and outlines the methodological approach used across the four subsequent essays.
THE LINK BETWEEN TRADE OPENNESS AND HUMAN DEVELOPMENT IN TURKEY: Analyzes the long-run and short-run relationship between trade openness and HDI while accounting for investment variables.
TRADE OPENNESS AND EDUCATION: EVIDENCE FROM TURKEY: Investigates how educational attainment as a proxy for human capital influences trade liberalization outcomes using an ARDL approach.
APPLYING VECM TO ESTIMATE THE TRADE OPENNESS – GROWTH NEXUS IN TURKEY: Examines the long-term causality between trade openness and real GDP per capita in the context of investment factors.
DOES TRADE OPENNESS INFLUENCE TOURISM INDUSTRY IN TURKEY: AN ARDL APPROACH: Explores the bidirectional causal relationship between tourism industry growth and trade openness.
CONCLUSION: Synthesizes the empirical findings from all essays and offers strategic recommendations for Turkish policy makers.
Keywords
Trade Openness, Turkey, Human Development Index, HDI, Education, Economic Growth, Tourism Industry, ARDL, VECM, Investment, Gross Capital Formation, Causality, Macroeconomics, Trade Liberalization, Policy Implications.
Frequently Asked Questions
What is the primary objective of this book?
The book aims to analyze the macroeconomic role of trade openness in Turkey by investigating its relationship with key socio-economic indicators across four empirical essays.
What are the main thematic areas covered in the research?
The research focuses on the nexus between trade openness and human development, education, economic growth, and the tourism industry in Turkey.
What research question does the book address?
The central question is how different macroeconomic factors, such as human capital, investment, and tourism, interact with trade openness to influence Turkey's economic performance and development.
Which scientific methods are employed in the study?
The author primarily utilizes Vector Error Correction Models (VECM) and Autoregressive Distributed Lag (ARDL) approaches to test for cointegration and causality in time-series data.
What does the main body of the work cover?
The main body consists of four empirical studies that each focus on a specific aspect of Turkey's economy, utilizing data ranging from 1970 to 2017 to provide evidence on short-run and long-run relationships.
Which keywords best describe this research?
Key terms include trade openness, human development, education, tourism industry, ARDL, VECM, Turkey, and economic growth.
How does human development impact trade openness in Turkey?
The research finds a significant positive impact, suggesting that improvements in HDI lead to higher trade openness in the long-run, likely due to increased capability to produce and export high-tech products.
What role does the tourism industry play in relation to trade?
The findings indicate a bidirectional relationship, suggesting that not only does trade openness influence tourism, but tourism development also drives trade liberalization in Turkey.
- Arbeit zitieren
- Elma Satrovic (Autor:in), 2019, Emerging Trends in Trade in Turkey, München, GRIN Verlag, https://www.grin.com/document/454102
