Title: Economic growth - inflation nexus and its impact on the development of the automotive industry: the case of Turkey

Authors: Dilek Temiz Dinç; Aytaç Gökmen; Kaan Üstündağ

Addresses: Department of International Trade, Çankaya University, Eskişehir Yolu, 29.km., Yukarı Yurtçu, 06810, Etimesgut, Ankara, Turkey ' Department of International Trade, Çankaya University, Eskişehir Yolu, 29.km., Yukarı Yurtçu, 06810, Etimesgut, Ankara, Turkey ' International Trade and Logistics Program, Graduate School of Social Sciences, Çankaya University, Ankara, Turkey

Abstract: Economic growth is essential for development and welfare of the citizens of a country. Economic development is an intact process involving potentially entire industries in a state. Also, economic growth is associated with macroeconomic indicators such as GDP, exports, imports, budget surplus or deficits, current account balance, interest and inflation rates. Nonetheless, inflation is an important macroeconomic indicator which can influence industrial development positively or negatively. Moreover, the aim of this study is to analyse the impact of inflation on the total automotive industry production in the Republic of Turkey resting on various econometric applications as JJ cointegration test, VECM, Wald test, Gtranger test and LSM.

Keywords: Turkey; growth; inflation; automotive; industry; development; economics; welfare.

DOI: 10.1504/IJEBR.2019.100653

International Journal of Economics and Business Research, 2019 Vol.18 No.1, pp.94 - 111

Received: 17 Feb 2018
Accepted: 08 Aug 2018
Published online: 06 Jul 2019 *

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