Foreign Trade Deficit Sustainability of Turkey
AbstractThis paper examines whether the foreign trade deficit of Turkey is sustainable or not by using three-regime threshold autoregressive unit root test of Kapetanious and Shin (2006). Three models are estimated including linear OLS, two-regime self-exciting threshold autoregressive and three-regime self-exciting threshold autoregressive models. The three-regime threshold autoregressive model is chosen as appropriate model for foreign trade deficit of Turkey by employing sup-Wald test. The finding results of the three-regime threshold autoregressive unit root test indicate that Turkey’s foreign trade deficit is not sustainable.
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Bibliographic InfoArticle provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.
Volume (Year): (2011)
Issue (Month): 1 ()
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F10 - International Economics - - Trade - - - General
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