Halicioglu, Ferda (2007): The Bilateral J-curve: Turkey versus her 13 Trading Partners.
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This study empirically analyses bilateral J-curve dynamics of Turkey with her thirteen trading partners using quarterly time series data over the period 1985-2005. Previous studies on the J-curve of Turkey are based on only aggregate data and they reveal mixed results. Short and long-run impacts of the depreciation of Turkish lira on the trade balance between Turkey and her thirteen trading partners are estimated from the bound testing approach and error correction modeling. The empirical results indicate that whilst there is no J-curve effect in the short-run, but in the long-run, the real depreciation of the Turkish lira has positive impact on Turkey’s trade balance in couple of countries. The stability of the long-run trade balance equations is also checked through CUSUM and CUSUMSQ stability tests.
|Item Type:||MPRA Paper|
|Institution:||Department of Economics, Yeditepe University|
|Original Title:||The Bilateral J-curve: Turkey versus her 13 Trading Partners|
|Keywords:||J-curve; co-integration; stability tests; Turkey|
|Subjects:||C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
|Depositing User:||Ferda HALICIOGLU|
|Date Deposited:||15. Jun 2007|
|Last Modified:||12. Feb 2013 15:29|
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