Institutional Change and Economic Policy Coordination for Turkey

Article Information
Journal: Business and Economics Research Journal
Title of Article: Institutional Change and Economic Policy Coordination for Turkey
Author(s): Pinar Ozdemir Cukadar, Nese Algan
Volume: 9
Number: 3
Year: 2018
Page: 513-529
ISSN: 2619-9491
DOI Number: 10.20409/berj.2018.120
Aim of this study is to investigate instiutional change of economic policies and to examine whether policies are well coordinated or not for the 1980-2016 period of Turkey. The coordination between economic policies may succeed in through trust, coordination and complementarity between institutions. Turkish economy transformed planned economy to free market system and institutional structure has changed dramatically in that period. Moreover in that period Turkey had exposed to several structural changes and economic crises too. The analysis can be significant when the suitable methods are used for these datas. This is the main reason why non linearity is tested by Harvey, Leybourne and Xiao (2008) and results supports that series are nonlinear. Fourier ADF unit root test is used nonlinear variables and Kapetanios, Shin and Snell (2003) cointegration test is applied for to analyze long run relations between variables. The empirical findings support that there is no relationship between monetary and fiscal policy variables. Secondly, Arby and Hanif (2010) methodology is used for calculating a coordination coefficient for Turkey. The low coordination coefficient supports that coordination institutions has not worked efficiently.

Keywords: Institutional Change, Nonlinear Time Series, Coordination, Turkish Economy

JEL Classification: C32, E61, E02 Full Text