Fresh Fruit and Vegetable Exportation of Turkey and its Contribution to the Economic Growth

Abstract

Economic growth is indispensable for the development of a country and welfare of its citizens. Economic activities can be improved with the enhancement of business sectors within its structure. Furthermore, exportation is a substantial means of reinforcing economic growth. In this research, the correlation between the fresh fruit & vegetable exportation and the economic growth of the Republic of Turkey is examined. Certain econometric methods as Augmented Dickey Fuller (ADF) test, Unit Root test, Phillips-Perron (PP) Unit Root test, Kwiatkowski, Phillips, Schmidt, Shin (KPSS) Unit Root test, Vector Auto-regression Analysis (VAR), Co-integration Analysis, Error Correction Model (VECM), Impulse-response Functions and Variance Decomposition Analysis are employed to research the correlation for the 2004 Q1-2015 Q4 period. It was concluded that the exportation of fresh fruits and vegetables have a favorable contribution to the economic growth of the Republic of Turkey in the long-run.