Inflation and Growth Dynamics in the Turkish Economy: An Econometric Analysis for the Period 2002–2024
Chapter from the book:
Bal,
H.
&
Ata,
A.
Y.
(eds.)
2025.
Macroeconomic Policies and Practices in Light of New Transformations in the Economy.
Synopsis
This study aims to examine the dynamic relationship between inflation and economic growth in the Turkish economy during the period 2002-2024 using econometric methods. This critical relationship, which has been debated in the macroeconomic literature for a long time and on which no consensus has been reached, has been evaluated using simple linear regression analysis specific to Turkey. The study utilizes annual time series data obtained from reliable data providers such as the Turkish Statistical Institute (TÜİK) and MATRİKS. In the econometric model established, the economic growth rate is defined as the dependent variable, while the inflation rate is treated as the independent variable. The findings reveal a statistically significant relationship between inflation and economic growth in the Turkish economy. This result is consistent with the majority of similar studies in the national literature and provides important insights into the potential effects of inflation on economic growth. The study aims to provide valuable contributions to macroeconomic policymakers and researchers by understanding Turkey's recent macroeconomic performance and establishing a solid foundation for future policy recommendations.
