Is Gold Really in Action in Turkey?
Is Gold Really in Action in Turkey?

Summary/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.

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