Evaluation of openness effects on economic growth in Turkey

Abstract

Especially, after 1980, the effect of labour productivity and capital investments on income per capita observed in open economies in the globalizing trade system has attracted the attention of growth economics literature. In this study, the relationship between labour productivity, fixed capital investments and commercial openness in Turkey between 1980-2016 was examined by the ARDL method. The results match the findings of Solow, Romer and Lucas whose models indicate that increase in openness, technology factor, labour productivity and fixed capital investments affect the economic growth process in a positive and significant way. In this sense, among the findings, the increasing level of integration into global trade causes technology and know-how transfer, the growth rate increases together with labour and capital efficiency in the next stage.