The effect of foreign income on economic performance of a small-open economy: evidence from Turkey

Hakan Berument () and Zubeyir Kilinc ()

Applied Economics Letters, 2004, vol. 11, issue 8, 483-488

Abstract: The effect of a shock in the foreign economic performance on the domestic economy is an attractive research area. It has consistently been found that this effect is non-negligible. However, the countries examined are mostly developed countries. In this study, the effects of a shock in foreign economy on the economic performance of Turkey are examined. The estimates suggest that a positive shock in the foreign economy positively affects Turkish output, increases the inflation rate, and appreciates the real exchange rate.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:11:y:2004:i:8:p:483-488

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DOI: 10.1080/1350485042000244512

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