IDEAS home Printed from https://ideas.repec.org/a/bdd/journl/v7y2013i1p137-157.html
   My bibliography  Save this article

The Effects of Real Exchange Rate Changes on Turkey's Foreign Trade Performance within the Framework of the Extended Marshall-Lerner Condition: Time Series Analysis with Multiple Structural Breaks

Author

Listed:
  • Ismet GOCER
  • Bekir ELMAS

Abstract

The purpose of this study is to analyze the relationship between real exchange rate and the balance of external trade of Turkey by using the intermediate goods, capital goods, consumption goods and total external trade data, within the extended Marshall-Lerner Condition framework, for 1989Q1-2012Q2 period by means of unit root test and cointegration methods with multiple structural breaks. In this study, the stationarity of series were tested with unit root test with multiple structural breaks of Carrion-i-Silvestre (2009). Cointegration relationship between series was tested via cointegration test with multiple structural breaks of Maki (2012). Cointegration coefficients were estimated by means of dynamic ordinary least square method. As a result of the analysis, extended Marshall-Lerner Condition is valid for all production groups in Turkey.

Suggested Citation

  • Ismet GOCER & Bekir ELMAS, 2013. "The Effects of Real Exchange Rate Changes on Turkey's Foreign Trade Performance within the Framework of the Extended Marshall-Lerner Condition: Time Series Analysis with Multiple Structural Breaks," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 7(1), pages 137-157.
    • Handle: RePEc:bdd:journl:v:7:y:2013:i:1:p:137-157
    as

    Download full text from publisher

    File URL: http://www.bddk.org.tr/Content/docs/bddkDergiTr/dergi_0013_08.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arzu Tay Bayramoglu & Deniz Sukruoglu, 2016. "Non-Energy Import Demand Function in Turkey: New Evidence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(12), pages 750-761, December.
    2. Sevgi SEZER, 2017. "The effects of real exchange rates and income on the trade balance: A second generation panel data analysis for transition economies and Turkey," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 171-186, Summer.

    More about this item

    Keywords

    Real Exchange Rate; External Trade Balance; Unit Root and Cointegration Test with Multiple Structural Breaks.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdd:journl:v:7:y:2013:i:1:p:137-157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sumeyye Azize CENGIZ (email available below). General contact details of provider: https://edirc.repec.org/data/bddgvtr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.