Macroeconomic Role of Service Exports in Türkiye: Trade Balance and Growth Implications

This study examines the macroeconomic role of service exports in Türkiye and their impact on the trade balance and economic growth from 1974 to 2023 via the Bayer-Hanck cointegration test and the Toda-Yamamoto causality test. The findings indicate that when exports account for a larger share of GDP, the current account balance tends to improve in the short term, greater domestic value added strengthens export performance, and economic growth Granger-causes service exports. This study makes an original contribution to the literature, as no prior research has specifically examined the macroeconomic role of service exports in Türkiye within this timeframe.