Özçag, Mustafa; Bölükbas, Mehmet

The aim of the study is to investigate the relationship between trade openness and inflation in Turkey economy for the period of 1980-2015. Unlike the other studies, symmetrical and asymmetrical analyses were used to examine the relationship between variables. The symmetric relationship between variables was analysed with Johansen cointegration and Hacker and Hatemi-J (2006) causality tests. The findings of symmetric analyses show that there is no cointegration or causality relationship. Whereas Hatemi-J and Irandoust (2012) hidden cointegration test and Hatemi-J (2012) causality tests were used for asymmetric analyses. According to the results of Hatemi-J and Irandoust (2012) hidden cointegration test, a cointegration relationship between trade openness and inflation in Turkey has been proved.