EconPapers    
Economics at your fingertips  
 

Explaining Investment and Intermediate Goods Imports and Estimating Elasticities in Turkey

Mustafa Akal ()

Zagreb International Review of Economics and Business, 2008, vol. 11, issue 1, 111-123

Abstract: Turkey has been highly dependable on foreign production goods for Its domestic production since 1980. This necessitates estimation of income, relative import price, exchange rate and term of trade elasticities of investment and intermediate goods import demand to manage trade deficit. Assuming theoretical causalities, this study shows that investment and intermediate goods imports can be explained by gross national product, relative import price, foreign exchange rate, terms of trade, relative import price adjusted and foreign terms of trade adjusted real foreign exchange rate for the period of 1982-2004. The income, relative import price and foreign exchange rate elasticities of investment good import are found less elastic than the related elasticities of intermediate good import. Investment and intermediate good imports increase as export increases. The positively estimated import price relative to domestic wholesale price effect implies the Veblen effect on the real import and complementary goods relationship between domestic and imported production goods.

Date: 2008
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.efzg.hr/default.aspx?id=10013 (text/html)
Abstract only available on-line

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zag:zirebs:v:11:y:2008:i:1:p:111-123

Ordering information: This journal article can be ordered from
Zagreb International Review of Economics and Business, Faculty of Economics and Business, Trg J. F. Kennedy 6, 10000 Zagreb, Croatia.
http://www.efzg.hr/default.aspx?id=6045

Access Statistics for this article

Zagreb International Review of Economics and Business is currently edited by Soumitra Sharma

More articles in Zagreb International Review of Economics and Business from Faculty of Economics and Business, University of Zagreb Contact information at EDIRC.
Series data maintained by Jurica Šimurina ().

 
Page updated 2017-11-16
Handle: RePEc:zag:zirebs:v:11:y:2008:i:1:p:111-123