An Empirical Evaluation of the Relationship between Trade Openness and External Debt: Turkish Case | Zendy

Özlem Ayvaz Kızılgöl | Zendy; Evren İpek | Zendy

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An Empirical Evaluation of the Relationship between Trade Openness and External Debt: Turkish Case

Author(s) -

Özlem Ayvaz Kızılgöl,

Evren İpek

Publication year - 2014

Publication title -

international econometric review

Language(s) - English

Resource type - Journals

eISSN - 1308-8807

pISSN - 1308-8793

DOI - 10.33818/ier.278030

Subject(s) - cointegration , openness to experience , error correction model , economics , turkish , econometrics , short run , debt , empirical research , monetary economics , external debt , macroeconomics , statistics , mathematics , psychology , social psychology , linguistics , philosophy

This paper aims to analyze the empirical relationship between trade openness and external debt for the Turkish economy, using quarterly time series data from the 1990:1-2012:2 periods. We utilize the bounds testing procedure to establish the cointegration relationship among variables and the ARDL analysis to detect short run and log run static effects. We support the results from the ARDL model through the application of GMM estimation, achieved with different model definitions. Empirical results indicate that increasing trade openness affects external debt positively in both the short run and long run.

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