Econometic Analysis Between Economic Growth And Production Factors: The Case Of Turkey (1980-2016)

The basic building blocks of economic growth are accepted by many economists of capital, labor and technological developments. The existence and strength of short-term and long-term relationships with economic growth of these basic components constitute the research topic of the study. In this study, the relationship between economic growth and the factors of production using annual time series covering the period 1980-2016 range for Turkey were examined. While the dependent variable of the model created is the Gross Domestic Product (Y), the independent variables are the amount of capital (K), the amount of labor (L) and the total factor productivity (A) which is representing technological development. The relationship between variables was tested with ADF and PP unit root tests, Johansen Cointegration Test and Vector Error Correction Model (VECM). According to the findings; it was concluded that there is a long-term causality relationship between variables. In addition, while short-term causality was determined from the amount of capital and labor to economic growth, there was no short-term causality relationship from total factor productivity to economic growth