Industrial Imports of Turkey From the European Union Countries and From the World : A Comparative Panel Data Analysis

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In this study, using panel data analysis, Turkeys industrial sectors’ import demand from the European Union countries and from the World is compared. Estimation method is Breitung two step estimator. Estimation results show that, Turkey’s imports from EU countries and from the World exhibit in some aspects similar, in some aspects different characteristics. As expected, increases in GDP and investment expenditures increases industrial sectors’ imports both from the EU and from the World with similar elasticities. Imports of Turkey from EU countries declined in the global crises of 2008, even after effect of other factors are accounted for. Increases in import price variables increases value of imports in both equations. This is largely due to the fact that, in response to price increases, Turkey can not decrease her import volume in proportion. While increasing consumption expenditure is not an important factor affecting imports from the EU, it is a significant factor positively affecting total imports.

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Import , Panel Data , Industrial Sectors , Breitung Two Step Estimator

Ege Academic Review (EAR)

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Ege Academic Review (EAR)