Major Determinants of Imports in Turkey

An Empirical Investigation of the Relationship between Financial Development and Merchandise Trade in Nigeria

“…In each of the model, the variables included, apart from the financial development variable which is constant or consistent in all the models, are based on the basis of a priori factors that have adjudged to determine any of dependent variable, be it merchandise import, merchandise export or total merchandise trade. For instance, with regard to merchandise import model, existing studies such as Abdullahi and Suleiman, (2008) and Aker, (2008) showed that variables such as real GDP which serves as income of an importing country, real exchange rate (measured in terms of domestic currency per unit of foreign currency), gross fixed capital formation a proxy for the level of investment in importing country, foreign reserves which determines the ability of importing country to pay are the factors that determine the amount of import of goods and services made by a country. This informs the rationale for including these variables in our model of merchandise import and financial development relationship.…”

Export-led Growth Revisited in Emerging Economies

“…However, in some studies, there is a two-way causality relationship between economic growth and exports in Turkey [16]. It is also found that there is a correlation between economic growth and imports in Turkey, because Turkey is importing energy resources, raw materials, intermediate goods and capital goods for production which in turn influences the growth rate [17].…”

Determinants of Sectoral Import in Manufacturing Industry: A Panel Data Analysis

“…Indeed, the aggregated models can be divided into two since some models estimate import demand as a function of aggregate income-expenditure (Kotan and Saygılı (1999), Masih and Masih (2000), Hooper et al (2000), Aydın et al (2004), Camarero and Tamarit (2004), Islam and Hassan (2004), Razafimahefa and Hamori (2005), Bahmani-Oskooee and Kara (2005), Yavuz and Güriş (2006), Aker (2008), Tang (2008), Chen (2008), Adnan (2008), Ziramba (2008), Petreski (2009), Bayraktutan and Bıdırdı (2010), Narayan and Narayan (2010), Omotor (2010), Alam and Ahmad (2011)) while some others take aggregate import as a function of disaggregated income expenditure namely, consumption, investment and exports components (Tang (2005), Zhou and Dube (2011), Chani and Chaudhary (2012), Modeste (2011)). In these studies the rational of disaggregating income-expenditure is explained as avoiding aggregation bias resulting from use of a single aggregate expenditure variable in the import function when different macro components of final expenditure produce different impacts on imports.…”

“…In the study of Aker (2008), the relationship between imports and GDP, fixed capital investments, real exchange rates, exports and Customs Union membership are investigated using a multiple regression technique for the 1989 -2003 period. The model results show that the most significant variables affecting imports are fixed capital investments and GDP while coefficients for both variables are around 0.5.…”

“…Nevertheless, there few studies (Cosar (2002), Saygılı (2010)) estimating sectoral export demand functions for Turkey. Cosar (2002), calculates real exchange rate and production elasticities of the sectoral exports While estimating import demand function for Turkey, some studies take into account the effects of the facts such as European Customs Union membership or economic crisis (Aker (2008), Yavuz and Güriş (2006), Kotan and Saygılı (1999)) according to the time period covered in the study. Similarly, in this study, a global crisis dummy is used in order to take into account the effects of the global economic crisis that started to show its significant impact on both Turkish and global trade mostly in the last quarter of 2008.…”