An Empirical Evaluation of the Relationship between Trade Openness and External Debt: Turkish Case
AbstractThis paper aims to analyze the empirical relationship between trade openness and external debt for the Turkish economy, using quarterly time series data from the 1990:1-2012:2 periods. We utilize the bounds testing procedure to establish the cointegration relationship among variables and the ARDL analysis to detect short run and log run static effects. We support the results from the ARDL model through the application of GMM estimation, achieved with different model definitions. Empirical results indicate that increasing trade openness affects external debt positively in both the short run and long run.
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Bibliographic InfoArticle provided by Econometric Research Association in its journal International Econometric Review.
Volume (Year): 6 (2014)
Issue (Month): 1 (April)
Contact details of provider:
Postal: Sairler Sokak, No:32/C, Gaziosmanpasa, Ankara, Turkey
Phone: + 90 312 447 51 95
Fax: + 90 312 447 51 95
Web page: http://www.era.org.tr/
More information through EDIRC
Foreign Debt; Openness; ARDL; GMM.;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
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.:
- Harrison, Ann, 1996.
"Openness and growth: A time-series, cross-country analysis for developing countries,"
Journal of Development Economics,
Elsevier, vol. 48(2), pages 419-447, March.
- Harrison, Ann, 1991. "Openness and growth : a time series, cross-country analysis for developing countries," Policy Research Working Paper Series 809, The World Bank.
- Ann Harrison, 1995. "Openness and Growth: A Time-Series, Cross-Country Analysis for Developing Countries," NBER Working Papers 5221, National Bureau of Economic Research, Inc.
- Dardana Rruka, 2004. "Decoding the Effects of Trade Volume and Trade Policies on Economic Growth: A Cross-Country Investigation," International Trade 0405003, EconWPA.
- M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
- Jeffrey M. Wooldridge, 2001. "Applications of Generalized Method of Moments Estimation," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 87-100, Fall.
- Emilio Colombo, 2009. "The Politics of External Debt in Developing Countries," Working Papers 176, University of Milano-Bicocca, Department of Economics, revised Dec 2009.
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