ESTIMATION OF IMPORT DEMAND FUNCTION FOR TURKEY (1970-2016)

The aim of this study is to estimate import demand function for Turkey with ARDL bound testing method and by means of elasticities. Time series that are used in this study are import, gross domestic product and real effective exchange rate, which are obtained from database of the OECD and FRED. These series are annual that includes between 1970 and 2016. At the end of the study, cointegration have been determined among import, gross domestic product and real effective exchange rate. Besides, as it is expected, income elasticity of import have been calculated as positive (0.872) and real exchange rate elasticity of import as negative (-0.629)