The Relationship of Capital Import – Domestic Saving and Economic Growth in Developing Countries: An Empirical Application on Turkey

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In this study, an answer is looked for the question of “Does capital import activate domestic saving and economic growth in Turkey?”. Displaying the relationships between economic growth, domestic saving and capital import has formed the purpose of the study in two different development strategy period (import substitution period; 1964-1980 and export-oriented period; 1964-2012) and covering both two period; 1964-2012. Granger-causality techniques are used to perform this in applied methodology. While the bi-directional causality between variables has been investigated in the period 1964-1980, the causality has not been observed in the period 1980-2012 and 1964-2012. It is understood from this point of view that, the effects of capital import which is the sum of public and private sectors to domestic saving and economic growth for Turkey that has position of developing country shows differences according to applied development strategies, and this effect follows an unstable path.

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Capital Import , Foreign Depth , Domestic Saving , Economic Growth , Time Series Analysis

Journal Of Social Sciences, Eskişehir Osmangazi University

164

Journal Of Social Sciences, Eskişehir Osmangazi University