CAUSAL STRUCTURE OF EXPORT-PRODUCTIVITY NEXUS IN TURKEY

This paper examines the causal relationship between real exports and economic growth in Turkey for the period 2000Q1-2017Q1 by estimating Directed Acyclic Graphs (DAGs). In doing so, we attempt to shed light on both the direct and indirect causation between the two with respect to other mediating factors. The resulting DAG patterns suggest that economic growth follows real exports expansion in Turkey, while the other variables such as capital formation and foreign output of other industrialized countries are also significant determinants of productivity growth in Turkey