Sustainability of Current Account for Turkey: Intertemporal Solvency Approach
AbstractThis paper examines sustainability of current account for Turkey during the period 1987:1-2002:4. Using the usual intertemporal borrowing constraint, we have tested for a long-run relationship between two Turkey exports measures and imports measures (measured real terms and percentage to real GDP) using quarterly data. In our empirical analysis of the sustainability of current account for Turkey, cointegration approaches have been used. Empirical results suggest that there exists a unique long-run or equilibrium relationship among real exports and imports and their percentage to real GDP and their estimated cointegration factor, , is very close to 1. The empirical findings suggest that the current account of Turkey is sustainable in the long run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 1220.
Date of creation: Jan 2005
Date of revision:
Publication status: Published in Praque Economic Papers 1.14(2005): pp. 82-88
Current account deficits; Sustainability; Intertemporal budget constraint;
Other versions of this item:
- Huseyin Kalyoncu, 2005. "Sustainability of Current Account for Turkey: Intertemporal Solvency Approach," Prague Economic Papers, University of Economics, Prague, vol. 2005(1), pages 82-88.
- F30 - International Economics - - International Finance - - - General
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