FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS

Volume: 4 Number: 4 January 15, 2016
Journal of Business Economics and Finance Cover
Journal of Business Economics and Finance
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FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS

Abstract

In Turkish economy, especially in recent years, ratio of current account deficits to national income is considerably high. Interrelations between current account balance and other macroeconomic indicators make it important to investigate which factors to what extent affect the current account balance in terms of economic policy decisions. In this study, the relationships between current account balance and various macroeconomic variables in Turkish economy are investigated empirically with Johansen cointegration test and with cointegrating regression analyses (FMOLS, CCR and DOLS) for the 1994-2014 period. It is found that foreign trade balance is a strong explanatory of the current account balance; terms of trade and gross domestic product also have statistically significant effects on the current balance. According to the results Harberger-Laursen-Metzler (HLM) hypothesis seems to be valid for Turkey. Besides, results of the study reveal that domestic interest rates and real effective exchange rate affects Turkey’s current account balance as expected but these variables are found to be insignificant.

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Publication Date

January 15, 2016

Submission Date

January 15, 2016

Acceptance Date

-

Published in Issue

Year 2015 Volume: 4 Number: 4

IZ

https://izlik.org/JA42MP45UH

Cite

RIS / Bibtex
APA
Ozdamar, G. (2016). FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS. Journal of Business Economics and Finance, 4(4). https://izlik.org/JA42MP45UH
AMA
1.Ozdamar G. FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS. JBEF. 2016;4(4). https://izlik.org/JA42MP45UH
Chicago
Ozdamar, Gokhan. 2016. “FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS”. Journal of Business Economics and Finance 4 (4). https://izlik.org/JA42MP45UH.
EndNote
Ozdamar G (January 1, 2016) FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS. Journal of Business Economics and Finance 4 4
IEEE
[1]G. Ozdamar, “FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS”, JBEF, vol. 4, no. 4, Jan. 2016, [Online]. Available: https://izlik.org/JA42MP45UH
ISNAD
Ozdamar, Gokhan. “FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS”. Journal of Business Economics and Finance 4/4 (January 1, 2016). https://izlik.org/JA42MP45UH.
JAMA
1.Ozdamar G. FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS. JBEF. 2016;4. Available at https://izlik.org/JA42MP45UH.
MLA
Ozdamar, Gokhan. “FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS”. Journal of Business Economics and Finance, vol. 4, no. 4, Jan. 2016, https://izlik.org/JA42MP45UH.
Vancouver
1.Gokhan Ozdamar. FACTORS AFFECTING CURRENT ACCOUNT BALANCE OF TURKEY: A SURVEY WITH THE COINTEGRATING REGRESSION ANALYSIS. JBEF [Internet]. 2016 Jan. 1;4(4). Available from: https://izlik.org/JA42MP45UH

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