Structural and Historical Effects of Economic Globalization on the Growth in Turkey

In this study, the effects of economic globalization on economic growth are studied historically. In the study conducted using Turkey's data for the 1970-2016 period, trade and financial globalization sub-indices representing economic globalization were selected. In empirical application, ADF, PP, Ng-Perron and KPSS tests have been performed for stationary analysis then tested relation among variables by using Johansen-Juselius Method. The study has adopted the long-run restricted structural VAR model because of that it is aimed to determine the long-run effects of independent variables on economic growth. The study also used the historical decomposition method to determine the role of each globalization shock on economic growth. According to the findings of the study, trade and financial globalization has a negative and permanent effect on economic growth in the long-run. Moreover, the explanatory impact of globalization shocks on the economic crisis was found to be greater than the impact on economic expansion in Turkey