Fresh Fruit and Vegetable Exportation of Turkey and its Contribution to the Economic Growth

Fresh Fruit and Vegetable Exportation of Turkey and its Contribution to the Economic Growth

Dilek Temiz Dinç (Çankaya University, Ankara, Turkey), Aytaç Gökmen (Çankaya University, Ankara, Turkey) and Seda Soygür (Çankaya University, Ankara, Turkey)
Copyright: © 2018 |Pages: 18
DOI: 10.4018/IJSEM.2018070101

Abstract

Economic growth is indispensable for the development of a country and welfare of its citizens. Economic activities can be improved with the enhancement of business sectors within its structure. Furthermore, exportation is a substantial means of reinforcing economic growth. In this research, the correlation between the fresh fruit & vegetable exportation and the economic growth of the Republic of Turkey is examined. Certain econometric methods as Augmented Dickey Fuller (ADF) test, Unit Root test, Phillips-Perron (PP) Unit Root test, Kwiatkowski, Phillips, Schmidt, Shin (KPSS) Unit Root test, Vector Auto-regression Analysis (VAR), Co-integration Analysis, Error Correction Model (VECM), Impulse-response Functions and Variance Decomposition Analysis are employed to research the correlation for the 2004 Q1-2015 Q4 period. It was concluded that the exportation of fresh fruits and vegetables have a favorable contribution to the economic growth of the Republic of Turkey in the long-run.
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Within the history of economic literature, the importance of economic growth has been always emphasized. The degree of competitiveness of a country is profoundly dependent on the development of its industries, specialization in labor, innovativeness, knowledge generation and technological development as well as how a country could use such capabilities to create qualified and popular goods and services which have demand on international and global markets. In other words, the regional and international competitiveness of a country depends on how much it is developed in terms of economics and how it can use this ability to compete in the global markets by increasing its commercial volume. The total commercial volume of a state is a combination of its exports and imports. In this formula, what matters is how much a country is competent to innovate and offer contemporary and qualified products in the global market place by improving its export volume. Furthermore, the dynamics of international trade would favor more exports in relation to imports in order to enhance the gross domestic product (GDP) volume and foreign exchange inflow, thus to make positive contributions to the development of a country. As one can imagine, the most enduring countries in the world with respect to economics are the ones which have considerable commercial volume involving more exports than imports and adapting the ever-changing conditions in the international business arena instantly (Zaman, Goschin, 2016; Shaffer et al., 2016; Tando, Ahmed, 2016; Filip, 2016; Jayaraman et al., 2017).

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