VALIDITY OF THIRLWALL’S LAW IN TURKISH ECONOMY AFTER THE BEGINING OF THE FULL MEMBERSHIP CONSULTATION OF TURKEY TO EUROPEAN UNION

Abstract

The present article aims to test Thirlwall’s Law for Turkish economy after the begining of the full membership consultation of Turkey to European Union. Firstly we estimated the elasticity of import demand and calculated the balance of payments constrained growth rates. We reached some similarities between actual rates of growth and rates of growth predicted by the Thirlwall s Law for Turkish economy. Although some similarities are founded between actual growth rates and predicted growth rates by the Thirlwall’s Law especially after the begining of the full membership consultation of Turkey to European Union, the results of McGregor and Swales test rejected the empirical validity of Thirlwall s Law for Turkish economy over the period 1983-2013.

Keywords

• Thirlwall Law
• Balance of Payments
• Economic Growth
• McGregor ve Swales Test