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Estimation of the Marshall-Lerner Condition and J Curve Dynamics for Turkey

Author

Listed:
  • Ilyas Siklar

    (Anadolu University, FEAS, Eskisehir/Turkey)

  • Merve Celik Kecili

    (Anadolu University, OEF, EskiÅŸehir/Turkey)

Abstract

The main purpose of this study is to investigate the validity of Marshall-Lerner condition and the existence of J curve for the Turkish economy. Because of transition to the floating exchange rate regime in 2001, the analyzing period has been chosen as 2003-2016 to use monthly data for the related variables. After conducting unit- root and cointegration tests, the estimated VECM results show that Marshall- Lerner condition holds for the Turkish case. On the other hand, estimated VECM produces impulse- response functions that prove the existence of J curve for the Turkish economy in the long run.

Suggested Citation

  • Ilyas Siklar & Merve Celik Kecili, 2018. "Estimation of the Marshall-Lerner Condition and J Curve Dynamics for Turkey," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 4(5), pages 125-130, 05-2018.
    • Handle: RePEc:arp:ijefrr:2018:p:125-130
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    References listed on IDEAS

    as
    1. Halicioglu, Ferda, 2008. "The bilateral J-curve: Turkey versus her 13 trading partners," Journal of Asian Economics, Elsevier, vol. 19(3), pages 236-243, June.
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