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Is there a long-run association between globalization and productivity: The case of Turkey
Abstract
Abstract. This study examines short and long-run association between globalization and productivity by using a time series sample of Turkey covering the years from 1970 to 2014. Firstly, I check the stationarity status of the series and following that I conduct a cointegration analysis among series in the framework of ARDL boundary test technique. After that, both short-run and long-run coefficients are gathered by using error corrected form of ARDL Model. In addition to that, I provide the results for diagnostic check of the model. Eventually, a causality test is applied to see if there is a causal relationship between the series. According to the findings, globalization and productivity series are cointegrated and it is found that there is a long-run significant positive impact of globalization on productivity while this figure is negative for short-run. Moreover the test results for causality test imply that there exists just one unidirectional causality running from globalization to productivity.
Keywords. Globalization, Productivity, Co-integration, Stationarity, ARDL Model.
JEL. C32, F61, O47.
Keywords
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