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The Comparative Advantage of Contagion Channels of EU Debt Crisis to Turkish Economy

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Listed:
  • İsmail ÇEVİŞ
  • Reşat CEYLAN
  • Nihal YAYLA

Abstract

In this study, examining the contagion channels of EU debt crisis to Turkey, a financial fragility index is composed for the period of 2004:Q1-2014:Q3 to represent the debt crises. The relationship between this index and capital and finance channel (IIP), foreign trade channel (TTV), expectations channel (CCI and RCI) was analyzed by ARDL (Bound Test) method. Findings illustrates that there is a long run relationship between financial fragility index, real sector confidence index, trade volume and international investment position and that direction of the causality is from financial fragility index to other variables. As a result, EU debt crisis affects Turkey from all three channels, but the expectations channel has a comparative advantage.

Suggested Citation

  • İsmail ÇEVİŞ & Reşat CEYLAN & Nihal YAYLA, 2018. "The Comparative Advantage of Contagion Channels of EU Debt Crisis to Turkish Economy," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(36).
    • Handle: RePEc:sos:sosjrn:180206
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    References listed on IDEAS

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    Cited by:

    1. Jiang, Hai & Tang, Shenfeng & Li, Lifang & Xu, Fangming & Di, Qian, 2022. "Re-examining the Contagion Channels of Global Financial Crises: Evidence from the Twelve Years since the US Subprime Crisis," Research in International Business and Finance, Elsevier, vol. 60(C).

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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • G01 - Financial Economics - - General - - - Financial Crises
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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