 Tradable and non-tradable expenditure and aggregate demand for imports in an emerging market economyÖner Günçavdı and Burç Ülengin Economic Systems, 2017, vol. 41, issue 3, 445-455 Abstract: Using an assumption of non-separability of non-tradable expenditure from imports, this paper examines the impact of the structural transformation undertaken after 2001 on imports and, in turn, the current account stance of Turkey. In this regard, an import demand function is derived under the assumption of non-separability, and is estimated using quarterly time series data from Turkey. The empirical results show that the assumption of non-separability cannot be rejected in the case of Turkey and the relative prices of non-tradable and tradable goods must be among the determinants of import demand in addition to the relative price of imports and real GDP. This result accordingly implies that recent increases in import expenditure are, to some extent, due to changes in the relative price structure in favour of non-tradable goods. Keywords: Import demand; Non-separability; Tradable and non-tradable expenditure; Capital inflows; Premature de-industrialisation; Turkey (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:41:y:2017:i:3:p:445-455 DOI: 10.1016/j.ecosys.2016.10.006 Access Statistics for this article Economic Systems is currently edited by R. Frensch More articles in Economic Systems from Elsevier Contact information at EDIRC. |
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