Trade and growth in a non-recognized small island state: Evidence from the turkish republic of northern cyprus; [Prekyba ir augimas nepripažintoje mažoje salos valstybėje: Turkijos respublikos šiaurės kipro atvejo tyrimas]

Paper Details

Authors:

DOI: 10.3846/jbem.2010.06

Journal: Journal of Business Economics and Management

Year: 2010

Publisher:

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 21

Abstract

This paper empirically investigates long-run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non-recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long-run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export-led growth hypothesis in Northern Cyprus while it rejects the validity of import-led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. copy; Vilnius Gediminas Technical University, 2010.

Keywords

Bounds test; Causality; Economic growth; International trade; North cyprus

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