Halit Yanikkaya

Trade openness and economic growth: a cross-country empirical investigation

Abstract This paper demonstrates that trade liberalization does not have a simple and straightforward relationship with growth using a large number of openness measures for a cross section of countries over the last three decades. We use two groups of trade openness measures. The regression results for numerous trade intensity ratios are mostly consistent with the existing literature. However, contrary to the conventional view on the growth effects of trade barriers, our estimation results show that trade barriers are positively and, in most specifications, significantly associated with growth, especially for developing countries and they are consistent with the findings of theoretical growth and development literature.

Minerals, Institutions, Openness, and Growth: An Empirical Analysis

Competing explanations of the resource curse are tested using panel data. The data support the existence of a mineral resource curse for developing countries with weak institutions, consistent with the hypothesis that owners of mineral resources use weak institutions and openness to trade to stifle the development of human capital, to the detriment of growth in other sectors of the economy. Manufacturing imports substitute for the development of domestic production, so openness to trade correlates with lower growth in mineral dependent economies. The “Dutch disease” and debt overhang explanations of the resource curse are not supported. (JEL O11, Q32)

Capital Account Openness, International Trade, and Economic Growth: A Cross-Country Empirical Investigation

New empirical estimates of the effects of capital restrictions on growth support capital account liberalization, especially for developed countries. Capital restrictions reduce the benefits of foreign direct investment (FDI) on growth in developing countries. Estimation results for long-term capital flows demonstrate that countries with higher flows grow faster, challenging the belief that countries must attain a threshold level of development or human capital to benefit from capital inflows. Moreover, findings show that trade with developed countries and FDI inflows are substitutes in developing countries. Overall, the results support capital account liberalization in developed and developing countries.

Polity Stability, Economic Growth, and Investment: A Dynamic Panel Analysis

Abstract In this paper, we empirically examine the effect of polity stability on economic growth and investment by using the dynamic panel estimation techniques for more than 100 countries over the period 1960–2009. Our initial results imply that democracy reduces growth in both developed and developing countries. However, there is no evidence for the existence of a significant effect of the democracy level on the overall, public and private investment. Our results also suggest that the growth and investment effects of polity stability proxied by regime durability and polity fragility measures greatly differ in developing and developed countries. Our empirical results indicate that polity stability promotes growth only in developing countries. It seems that regime durability and polity fragility affect economic growth mainly through investment. We also make a distinction between public and private investment when examining the effects of polity stability. It seems that the durability and fragility matter for private investment. Therefore, developing countries ought to put solid efforts to lessen polity instability to promote economic growth.

THE DETERMINANTS OF FDI IN TRANSITION ECONOMIES: A PANEL DATA ANALYSIS

Bu calismada gecis ekonomilerine yonelik dogrudan yabanci sermaye yatirimlarinin (DYSY) belirleyicileri 1993-2012 donemleri arasinda panel veri analizleri yontemiyle incelenmistir. Calismada elde edilen bulgular genis yerel piyasalara ve makro ekonomik istikrara sahip ulkelerin DYSY’leri kendi ulkelerine cekme konusunda daha basarili olduklarini gostermektedir. Calismamizin bulgulari sonuc olarak Gecis Ekonomilerine yonelik DYSY’lerin piyasaya ve dogal kaynaga yonelimli oldugu hipotezini desteklemektedir.