Estimation of the Marshall-Lerner Condition and J Curve Dynamics for Turkey
Journal: International Journal of Economics and Financial Research (Vol.4, No. 5)Publication Date: 2018-05-15
Authors : Ilyas Siklar; Merve Celik Kecili;
Page : 125-130
Keywords : Trade elasticity; Marshall-Lerner condition; J-curve; Turkey.;
Abstract
The main purpose of this study is to investigate the validity of Marshall-Lerner condition and the existence of J curve for the Turkish economy. Because of transition to the floating exchange rate regime in 2001, the analyzing period has been chosen as 2003-2016 to use monthly data for the related variables. After conducting unit- root and cointegration tests, the estimated VECM results show that Marshall- Lerner condition holds for the Turkish case. On the other hand, estimated VECM produces impulse- response functions that prove the existence of J curve for the Turkish economy in the long run.
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Last modified: 2018-11-06 17:56:18