Coup D’état and Economic Growth in Turkey: Evidence from ARDL Bounds Testing Procedure

Authors

  • Ibrahim Bakirtas Aksaray University, Faculty of Economics and Administrative Sciences, Department of Economics, Aksaray, Turkey https://orcid.org/0000-0003-0945-2823
  • Ramazan Sari Technical University of Denmark, Department of Technology, Management and Economics, Kgs. Lyngby, Denmark https://orcid.org/0000-0002-8276-7648
  • Suleyman Koc Aksaray University, Faculty of Economics and Administrative Sciences, Department of Economics, Aksaray, Turkey https://orcid.org/0000-0002-6976-045X

DOI:

https://doi.org/10.2298/PAN200818012B

Keywords:

Coup d'état, Economic growth, Turkish economy, ARDL, Income

Abstract

In seven decades of the multiparty democracy period, Turkey has experienced four military coups. Even though the coups are thought to be a cold war phenomenon in the literature, they are still relevant. The failed coup attempt in 2016 reminds us that the military coup is still a critical issue in Turkish democracy and the economy. Interestingly, there is not an adequate amount of empirical research on the political economy of Turkey's military coup experience. This study's motivation is to provide empirical evidence for the economic growth-coup nexus literature with a core focus on Turkey, which is a remarkable case in many aspects. For this purpose, we extend an open-economy Cobb-Douglas production function with coups and use the autoregressive distributed lags (ARDL) method for the period 1950 to 2014. According to the study's empirical findings, coup d'états negatively affect real GDP in Turkey. Through structural reforms, Turkey should strengthen its democratic institutions to prevent such antidemocratic attempts. 

JEL: C22, F50, O40.

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Published

2024-01-23

How to Cite

Bakirtas, I., Sari, R., & Koc, S. (2024). Coup D’état and Economic Growth in Turkey: Evidence from ARDL Bounds Testing Procedure. Panoeconomicus, 71(1), 71–94. https://doi.org/10.2298/PAN200818012B

Issue

Section

Original scientific paper