Is Gold Really in Action in Turkey?

Betül Ismić

Abstract


Turkey has been a significant gold importer since 1985 for three
reasons: The production of gold is on a limited scale, high gold
demand is pretty tied to traditions and Turkish consumers have
seen gold as an effective hedge against inflation and currency
weakness. Turkey’s gold foreign trade can be classified into two
groups as untapped gold and processed gold. Untapped gold states
gold bars and processed gold presents gold jewelry. We observe
from the available data that Turkey is importer of untapped gold
and exporter of processed gold for almost 30 years. Since 2001,
two things have changed regarding this situation in Turkey:
Turkey started to produce gold through gold mining and also
started to export untapped gold. World Gold Council published
a report in January, 2015 named “Turkey: Gold in Action” that
discusses the economic contribution of gold to Turkey’s economy
and the increase in gold export in last year’s raised the interest
whether foreign trade of gold has an impact on economic growth.
This paper aims to search the answer of this question by analyzing
the impact of gold export and import on economic growth of
Turkey for the period 2001: Q1-2014:Q4 with an econometric
model. Augmented Dickey Fuller Test and Ordinary Least Square
Method are applied to our model.

Keywords


Economic Growth; Gold Export; Gold Import

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DOI: http://dx.doi.org/10.21533/isjss.v1i2.24

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Copyright (c) 2016 Betül Ismić

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