The theoretical considerations do not yield a persuasive answer on the net effect of reserves on economic growth as this effect may go either a positive or negative direction. Similarly, the empirical literature on the relationship between the two provides ambiguous findings. Hence, this study attempts to examine the long-run dynamics of Turkey’s international reserves - economic growth nexus for the period 1990-2020, employing the Autoregressive Distributed Lags (ARDL) bounds testing approach to cointegration. The empirical evidence suggests a significant and positive but minimal effect of international reserves on economic growth.
Key words: International Reserves, Economic Growth, Cointegration. JEL Codes: C22, F21, F30. Article Language: EnglishTurkish
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