The relationship between globalization and economic growth: The case of Turkey

The aim of this thesisis to investigate the link between globalization and economic growth theoretically and emprically. As seen empirically, the globalization-economic growth relationship is analysed in case of Turkey over the period of 1987-2018 by using a time-series analysis. Fixed capital and technological innovations are included in economic growth model as additional determinats of economic growth. Firstly, the unit root properties of variables are examined by Vogelsang-Perron one structural break. Secondly, the presence of long run relationship between the variables is investigated through the ARDL bounds test. Thirdly, the long run parameters of variables is estimated by the ARDL, DOLS, FMOLS and CCR approaches. Finally, the Toda-Yamamoto causality test is used to analyze the causal linkages between the variables. The findings obtained from the econometric analyses indicate that globalization decreases economic growth in the long run. This enables to present important policy recommendations.