Economic Growth, Export and Eximbank Loans: Toda-Yamamoto Causality Test

Following the choices made on January 24, Türkiye has transitioned to an export-oriented economic development model, marking a significant shift in its economic strategy. In subsequent years, the Turkish economy has endeavored to integrate more with the global economy and align with the liberalization mandates of the contemporary era. The implementation of an export-oriented economic growth model necessitated resources to finance the export-driven production strategy, leading to the establishment of Eximbank in 1987 to address this resource requirement. Eximbank, primarily established to finance exports, also indirectly fosters the expansion of the Turkish economy. This study aims to examine the causal link between net exports, which directly influence economic growth, and the financing extended by Eximbank. The study will look at how economic growth, Eximbank loans, and Türkiye's exports are connected by using the Toda-Yamamoto (1995) Causality Test on data from 1999 to 2024, after checking for stability with ADF and PP Unit Root Tests. The study indicates that fluctuations in Eximbank credits may influence exports and economic growth, while economic growth may concurrently affect Eximbank credits and exports. The study's conclusion also presents recommendations pertinent to the research.