An empirical model for the Turkish trade balance: new evidence from ARDL bounds testing analyses

Korap, Levent

An empirical model for the Turkish trade balance: new evidence from ARDL bounds testing analyses

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, the determinants of the Turkish trade balance are tried to be analyzed in an empirical modelling approach. For this purpose, the contemporaneous ARDL-based bounds testing has been used to examine the existence of a long run co-integration relationship between the variables of our interest. The estimation results indicate that real exchange rate depreciations improves the trade balance in a strong and significant way, that domestic real income affects the trade balance negatively, and that trade balance is strongly improved due to an increase in foreign real income. No significant effect of crude oil prices can be observed on trade balance. The error correction modeling gives results in line with the long run findings of the co-integration analysis.

Keywords: Trade Balance; ARDL Bounds Testing Approach; Turkish Economy (search for similar items in EconPapers)
JEL-codes: C32 F10 F41 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/32550/1/MPRA_paper_32550.pdf original version (application/pdf)

Related works:
Journal Article: An Empirical Model for the Turkish Trade Balance: New Evidence from ARDL Bounds Testing Analyses (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:32550

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().