Import demand function of Turkey: A comparative analysis 1990-2016

This study presents a econometric analysis of total and with selected countries import demand for Turkey. In this study, a sample of quertly data from 1990 to 2016 were used to investigate the long-run relationship between import demand, at the same time for selected countries annual data was used. For total import demand function, its determinants, namely income, relative prices, foreign exchange inflows and external debt stock by the Maki(2012) cointegration test. This study is divided into main model and comprehensive model. For selected countries, main model was used. By the results of this test, it was demonstrated that import volume, income, relative prices, foreing exchange inflows and external debt stock were cointegrated. The estimated long term coefficient of import demand with respect to independent variables were found as 1.22, -0.06, 0.37 and -0.38, respectively. According to findings, policy makers need to take account foreign exchange inflows and external debt stock as well as income and price to estimate import demand function. Income and relative prices for Germany and China were found 1.31, 3.37, -0.07 and -0.23 respectively. While Germany's price and income elasticities almost are same with total import, for China, income elasticity stands out. Keywords: Maki (2012), Import Demand Function, Foreign Exchange Inflows, External Debt Stock, China, Germany, Engle-Granger