Investigation on sources of growth for Turkey

This paper evaluates the correlations between growth and selected macroeconomic indicators in, Turkey under the dynamic macroeconomic adjustments as a globalizing developing economy during 1968-1998. In this context, a sensitivity analysis for basic growth variables, including fiscal, trade, and monetary indicators, is carried out by using a variant of the extreme bounds analysis (EBA). By controlling the various fiscal, trade, and monetary variables, I reveal that, with the exception of human capital, none of the variables, which are always included in the growth regressions, are robust. Thus, the paper confirms the crucial role of human capital in the growth literature.