Determinants of Industrial Production in Turkey
Journal Title: Journal of Economics and Financial Analysis - Year 2017, Vol 1, Issue 2
Abstract
The necessity of emphasizing the importance of industrial production for the sustainable growth and development of Turkey has been a topic of discussion in political and academia circles. The growth in industrial production (output) depends on the investment in manufacturing sectors and the demand for the products. Along with internal demand, Turkey tries to support its manufacturing base with export (incentives). Manufacturing items occupy the greatest share of products in export sales. The development of manufacturing capabilities of the country is clearly based on the demand from inside and out. The effect of Turkey’s export on its industrial production throughout 2000’s has been analyzed. For this purpose we developed a VAR model where industrial production index was the dependent variable and export, investment, and interest rate were independent variables. All independent variables were found to be significantly explaining industrial production.
Authors and Affiliations
Mustafa Ozturk, Yavuz Agan
Keywords
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