The Iron and Steel Sector and Economic Growth: Evidence from Turkey
The purpose of this study is to examine the relationship between the value added generated by the iron and steel sector (ISS) and economic growth. The unit root test, a vector auto regression model, a vector error correction model and the Granger causality test are used to analyze this relationship, as well as its responsiveness to shocks. Significant forward and weak backward linkages are found for the ISS. Unidirectional long-term causality and bidirectional short-term causality are observed. Estimated parameters are consistent with theoretical expectations.
KeywordsTotal Factor Productivity Granger Causality Stochastic Frontier Granger Causality Test Vector Error Correction Model
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