Determinants of the Current Account Balance in Turkey: an ARDL Approach

Determinants of the Current Account Balance in Turkey: an ARDL Approach

The objective of this paper is to examine the theoretical and empirical linkage between current account deficits and a broad set of macroeconomic variables in Turkey. This paper employs the Auto Regressive Distributed Lag (ARDL) model to specify the determinants of the current account in Turkey betw...

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Veröffentlicht in:Ekonomska istraživanja 2013, Vol.26 (1), p.1-16
Hauptverfasser: Insel, Aysu, Kayikçi, Fazil
Format: Artikel
Sprache:eng
Schlagworte:
Appreciation
Ardl
Balance Of Payments
Bilanca plaćanja
Boud Test
Current Account
Current accounts
Developing countries
Economic growth
Economic theory
Foreign exchange rates
Granični test
Industrialized nations
Inflation
International trade
LDCs
Liberalization
Macroeconomics
Openness
Petroleum
Prices
Regression analysis
Studies
Tekući račun
Terms of trade
Trade deficit
Variables
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Beschreibung
Zusammenfassung:The objective of this paper is to examine the theoretical and empirical linkage between current account deficits and a broad set of macroeconomic variables in Turkey. This paper employs the Auto Regressive Distributed Lag (ARDL) model to specify the determinants of the current account in Turkey between 1987 and 2009. Results indicate that inflation affects the current account balance positively, whereas growth, openness, oil prices, and appreciation of the real exchange rate cause the current account balance to deteriorate.After any shock, it takes four quarters for the current account balance to return to its long-run equilibrium level.
ISSN:1331-677X
1848-9664
DOI:10.1080/1331677X.2013.11517587