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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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
- F10 - International Economics - - Trade - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hasanov, Mübariz & Omay, Tolga, 2008. "Monetary policy rules in practice: Re-examining the case of Turkey," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(16), pages 4309-4318.
- Paresh Kumar Narayan & Seema Narayan, 2004. "Is There A Long-Run Relationship Between Exports And Imports? Evidence From Two Pacific Island Countries," Economic Papers, The Economic Society of Australia, vol. 23(2), pages 152-164, 06.
- Paresh Kumar Narayan & Seema Narayan, 2005. "Are exports and imports cointegrated? Evidence from 22 least developed countries," Applied Economics Letters, Taylor and Francis Journals, vol. 12(6), pages 375-378.
- Husted, Steven, 1992. "The Emerging U.S. Current Account Deficit in the 1980s: A Cointegration Analysis," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 159-66, February.
- Verma, Reetu & Perera, Nelson, 2008. "An Empirical Analysis of Sustainability of Trade Deficit:Evidence from Sri Lanka," Economics Working Papers wp08-06, School of Economics, University of Wollongong, NSW, Australia.
- George Kapetanios & Yongcheol Shin, 2002.
"Unit Root Tests in Three-Regime SETAR Models,"
465, Queen Mary, University of London, School of Economics and Finance.
- PERERA, Nelson & VARMA, Reetu, 2008. "An Empirical Analysis Of Sustainability Of Trade Deficit: Evidence From Sri Lanka," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 5(1), pages 79-92.
- Dierk Herzer & Nowak-Lehmann Felicitas, 2006. "Is there a long-run relationship between exports and imports in Chile?," Applied Economics Letters, Taylor and Francis Journals, vol. 13(15), pages 981-986.
- Fountas Stilianos & Wu Jyh-Lin, 1999. "Are the U.S. Current Account Deficits Really Sustainable?," International Economic Journal, Korean International Economic Association, vol. 13(3), pages 51-58.
- Manuchehr Irandoust & Johan Ericsson, 2004. "Are Imports and Exports Cointegrated? An International Comparison," Metroeconomica, Wiley Blackwell, vol. 55(1), pages 49-64, 02.
- Mohsen Bahmani-Oskooee & Hyun-Jae Rhee, 1997. "Are Imports and Exports of Korea Cointegrated?," International Economic Journal, Korean International Economic Association, vol. 11(1), pages 109-114.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diana Dimitrova).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.