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Capital Flows and the Non-Tradables in the Turkish Economy after Capital Account Liberalization

In: Proceedings of the Conference on Emerging Economic Issues in a Globalizing World

Author

Listed:
  • F. Kemal Kýzýlca

    (Ankara University)

Abstract

This paper investigates the relationship between capital flows and the share of the non-tradables sector in the Turkish economy after capital account liberalization. Findings support a lagged, yet positive effect of capital flows on the share of non-tradables, which brings the economy more vulnerable to the risk of reversal of capital inflows. This underline the importance of a regulation controlling foreign currency denominated borrowings of private sector firms with limited export earnings and elimination of excessive official reserve accumulation which acts as an implicit bailout guarantee.

Suggested Citation

  • F. Kemal Kýzýlca, 2008. "Capital Flows and the Non-Tradables in the Turkish Economy after Capital Account Liberalization," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Emerging Economic Issues in a Globalizing World, pages 108-118, Izmir University of Economics.
    • Handle: RePEc:izm:prcdng:200806
    as

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    File URL: http://eco.ieu.edu.tr/wp-content/proceedings/2008/0806.pdf
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    References listed on IDEAS

    as
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