Causality Relationship Between International Trade and Economic Growth: An Evaluation in Terms of Turkey, Italy and Spain

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Arvas M. A., Torusdağ M.

IV. IMCOFE-International Multidisciplinary Congress of Eurasia, Barcelona, Spain, 27 - 30 April 2017, vol.ISBN, pp.10-20

  • Publication Type: Conference Paper / Full Text
  • Volume: ISBN
  • City: Barcelona
  • Country: Spain
  • Page Numbers: pp.10-20
  • Van Yüzüncü Yıl University Affiliated: Yes

Abstract

In this study, the impact of export and import expansion on economic growth is examined for three mediterranean countries (Turkey, Italy and Spain). For this purpose, this impact is estimated by Johansen co-integration and Granger causality analysis based on error correction model (ECM) for the period 2003:1—2016:1. According to the results, while GLE, ELG, ILG and GLI hypotheses are supported for Turkey and Spain, only GLE and ELG hypotheses are accepted for Italy.

Keywords: International Trade, Economic Growth, Granger Causality Test based on Error Correction Model