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.
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Volume (Year): 19 (2008) Issue (Month): 3 (June) Pages: 236-243 Download reference. The following formats are available: HTML
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References listed on IDEAS 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.:
Mohsen Bahmani-Oskooee & Artatrana Ratha, 2004.
"The J-Curve: a literature review,"
Applied Economics,
Taylor and Francis Journals, vol. 36(13), pages 1377-1398, July.
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