Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5087777 | Journal of Asian Economics | 2008 | 8 Pages |
Abstract
This study empirically analyses bilateral J-curve dynamics of Turkey with her 13 trading partners using quarterly time series data over the period 1985-2005. Short- and long-run impacts of the depreciation of Turkish lira on the trade balance between Turkey and her 13 trading partners are estimated from the bounds cointegration testing approach and error correction modelling. 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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ferda Halicioglu,