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The J-curve dynamics of Turkey: an application of ARDL model

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  • Ferda Halicioglu

Abstract

This article seeks an empirical evidence for the existence of the J-curve phenomenon both in the short-run and long-run for Turkey over the period 1980-2005. The bounds testing cointegration approach is employed to estimate the trade balance model. An augmented form of Granger causality analysis is implemented between trade balance, real effective exchange rates, foreign income and domestic income. The stability of the short-run as well as long-run coefficients in the trade balance model is tested too. The empirical results that the J-curve phenomenon is supported only in the short-run. Whilst causality tests reveal mix results, the parameter stability tests seem to be inconclusive.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 18 ()
Pages: 2423-2429

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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2423-2429

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Cited by:
  1. Jamilov, Rustam, 2013. "Capital mobility in the Caucasus," Economic Systems, Elsevier, vol. 37(2), pages 155-170.
  2. Muhammad ASIF & Kashif RASHID, 2011. "Impact of Devaluation on Trade Balance in Pakistan," Oeconomics of Knowledge, Saphira Publishing House, vol. 3(3), pages 16-25, July.
  3. Halicioglu, Ferda, 2013. "Dynamics of obesity in Finland," MPRA Paper 48342, University Library of Munich, Germany.
  4. Manuel CANTAVELLA-JORDA & Sheila Amin GUTIERREZ DE PIÑERES, 2012. "A Cross-national Panel Study of Devaluations on Disaggregated Export Sectors: A Case for Sector Specific Policies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).

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