The Effect Of Saving Deficit On The Middle Income Trap In Turkey Economy


ENER M., Karanfil M.

ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, vol.10, no.2, pp.31-46, 2015 (Peer-Reviewed Journal) identifier

  • Publication Type: Article / Article
  • Volume: 10 Issue: 2
  • Publication Date: 2015
  • Journal Name: ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES
  • Journal Indexes: Emerging Sources Citation Index, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.31-46

Abstract

The purpose of the study is to analyze the effect of the total domestic savings on per capita income for Turkish economy which remained as one of the middle income countries for years between the years 1980 and 2013 by using time series analysis. Relationship among the variables was investigated by using cointegration and causality methodology. Unidirectional causality from total domestic savings and also from deposit interest rate to per capita income were found. Moreover, a unidirectional causality existed from investments to money supply. However no causality effect was found from per capita income to total domestic savings.