The J-Curve Dynamics of Turkey: An Application of ARDL Model
Ferda Halicioglu
MPRA Paper from University Library of Munich, Germany
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 suggest 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.
Keywords: J-curve; trade balance; cointegration; causality; stability tests; Turkey (search for similar items in EconPapers)
JEL-codes: C22 F14 F31 (search for similar items in EconPapers)
Date: 2008-01-21
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/6824/2/MPRA_paper_6824.pdf original version (application/pdf)
Related works:
Journal Article: The J-curve dynamics of Turkey: an application of ARDL model (2008) 
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:6824
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 ().