SavedAdd your journal

Journals / Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi / 2021 / Cilt: 30 - Sayı: 1

RELATIONSHIP BETWEEN TRADE OPENNESS AND INFLATION IN TURKEY: ROMER HYPOTHESIS IS VALID IN TURKEY?

TÜRKİYE'DE TİCARİ AÇIKLIK VE ENFLASYON İLİŞKİSİ: ROMER HİPOTEZİ TÜRKİYE'DE GEÇERLİ MİDİR?

Musa ATGÜR
Pages
45–57
Publication Date
2022-10-11
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Johansen Cointegration test method results show that trade openness, inflation rate and other variables are related in long-run.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to examine the relationship between trade openness and inflation in Turkey during the period 1980-2018.
📊
Key Findings & Data:Johansen Cointegration test method results show that trade openness, inflation rate and other variables are related in long-run.
💡
Conclusion & Impact:The findings show that the trade openness affects inflation in Turkish Economy and the findings support the assumption that the Romer Hypothesis is valid for Turkish Economy
🔬Design:Research Article
📍Scope:2018 Verileri
⚙️Variables:Domain Parameters

Abstract

This study aims to examine the relationship between trade openness and inflation in Turkey during the period 1980-2018. In this context, Johansen Cointegration Test and Full Modified Ordinary Least Squares estimation methods were applied by using data at annual frequency. Johansen Cointegration test method results show that trade openness, inflation rate and other variables are related in long-run. Full Modified Least Squares estimate results show that trade openness, international terms of trade and real GDP growth rate had a negative effect on inflation. The findings show that the trade openness affects inflation in Turkish Economy and the findings support the assumption that the Romer Hypothesis is valid for Turkish Economy

Özet

Bu çalışma, Türkiye'de 1980-2018 döneminde ticari açıklık ile enflasyon arasındaki ilişkiyi incelemeyi amaçlamaktadır. Bu kapsamda, yıllık frekansta veriler kullanılarak, Johansen Eşbütünleşme Test ve Tam Modifiye Edilmiş Sıradan En Küçük Kareler tahmin yöntemleri uygulanmıştır. Johansen Eşbütünleşme test yöntemi sonuçları, ticari açıklık, enflasyon oranı ve diğer değişkenlerin uzun dönemde ilişkili olduklarını göstermektedir. Tam Modifiye Edilmiş En Küçük Kareler tahmin sonuçları, ticari açıklığın, dış ticaret hadlerinin ve reel GSYİH büyüme oranının enflasyon üzerinde negatif yönde etkili olduğunu göstermektedir. Bulgular, Türkiye'de ticari açıklığın enflasyon üzerinde etkili olduğunu ve Romer Hipotezinin Türkiye için geçerli olduğu varsayımını desteklemektedir.

🔖

Cite This Article

ATGÜR, M. (2022). RELATIONSHIP BETWEEN TRADE OPENNESS AND INFLATION IN TURKEY: ROMER HYPOTHESIS IS VALID IN TURKEY?. Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Cilt: 30 - Sayı: 1, 45–57. https://ajindex.com/articles/485515

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (13)

  1. Aron, J. & Muellbauer, J. (2007). Inflation dynamics and trade openness: with an application to South Africa. CSAE Working Paper Series no.11. Ashra, S. (2002). Inflation and openness: a study of selected developing economies. Working Paper No. (84), Indian Council for Research on International Economic Relations, New Delhi, India. Atabay, R. (2016). The relationship between trade openness and inflation in Turkey. International Journal of Research in Business & Social Science, 5(3), 137-145.
  2. Binici, M., Cheung, Y. W. & Lai, K. S. (2012). Trade openness, market competition, and countries: Some sectoral evidence from OECD countries. Türkiye Cumhuriyet Merkez Bankası Working Paper No: 12/06, 1-19.
  3. Bowdler, C. & Nunziata, L. (2006). Trade openness and inflation episodes in the OECD. Journal of Money, Credit, and Banking, 38(2): 553-563.
  4. Chhabra, M. & Alam, Q. (2020). An empirical study of trade openness and inflation in India. DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer; Indian Institute of Management Calcutta, 47(1): 79-90.
  5. Fujii, E. (2017). What does trade openness measure?. Ceifo Working Papers 6656. Güneş, Ş. & Konur, F. (2013). Türkiye ekonomisinde dışa açıklık ve enflasyon ilişkisi üzerine ampirik bir analiz. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 8(2): 7-20.
  6. Johansen, S. (1988). Statistical analysis of cointegrating vectors. Journal of Economic Dynamics and Control, 12: 231-254.
  7. Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica, 59: 1551-1580.
  8. Kızılgöl, Ö. A. & İpek, E. (2015). Türkiye’de enflasyon ile ticaret açıklığı arasındaki ilişki. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 15(4): 43-54.
  9. Kurihara, Y. (2013). International trade openness and inflation in Asia. Research in World Economy, 4 (1): 70-75.
  10. Lee, J. & Strazicich, M. C. (2003). Minimum lagrange multiplier unit root test with two structural breaks. The Review of Economics and Statistics, 85(4): 1082-1089.
  11. Lin, F., Mei, D., Wang, H., & Yao, X. (2017). Romer was right on openness and inflation: evidence from sub-saharan Africa. Journal of Applied Economics, 20(1): 121–140.
  12. Lotfalipour, M. R., Montazeri, S. & Sedighi, S. (2013). Trade openness and inflation: Evidence from MENA region countries. Economic Insights – Trends and Challenges, 2(115): 1-11.
  13. Mukhtar, T., Jehan, Z. & Bilquees, F. (2019). Is trade openness inflationary in developing economies: An asymmet