Real exchange rates and bilateral trade dynamics of Turkey: panel cointegration approach

Çelik, Sadullah; Kaya, Hüseyin

doi:10.1080/13504850802388993

Cited by 22 publications

(3 citation statements)

References 14 publications

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“…In the short run, the increase in the real exchange rate has no effect on the trade balance, while both domestic income and foreign income negatively affect the deterioration of the trade balance. The study of Celik and kaya (2010) aimed to analyze the dynamics of bilateral trade of Turkey with seven countries (France, Germany, Netherlands, Italy, Japan, United States, United Kingdom) using cross-sectional data during the period 1985 to 2006. The results showed that there is a long-run relationship between real exchange rates and real income with the trade balance, as the devaluation of the Turkish currency will improve the trade balance of Turkey.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Jordan-Turkish bilateral trade balance

Jaloudi¹,

Harb²

2019

Pressacademia

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Purpose -This paper explores empirically the determinants of the bilateral trade balance for Jordan-Turkish economy, and the impact of the free trade agreement between Jordan and Turkey on the Jordanian-Turkish trade balance. Methodology -The study used Autoregressive Distribution Lag (ARDL) model to estimate the long run relationship between Jordanian-Turkish bilateral trade balance and its determinants during the period from 1978 until 2017. Findings -The result of the analysis found that the real effective exchange rate has a positive effect on the trade balance in the long run, and negative effect on the trade balance in the short run, while the relative money supply and relative GDP have a weak effect on the trade balance in the short and long run. Also, the result points out that the impact of the free trade agreement is insignificant on the trade balance in the long run, which supports the position of the Jordanian government, which has revoked the work in this agreement. Conclusion -The most important policy implication to be concluded from these empirical findings is that devaluation of Jordan Dinar against Turkish Lira can be used to accomplish an improvement in the trade balance of Jordan against Turkey. However, increasing the relative money supply or relative income will not achieve the desired goal.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of Jordan-Turkish bilateral trade balance

Jaloudi¹,

Harb²

2019

Pressacademia

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“…These studies are criticized for suffering from aggregation bias in that they used trade flows between Turkey and rest of the world. To reduce the bias, Halicioglu (2007Halicioglu ( , 2008b and Celik and Kaya (2010) estimated bilateral trade balance models between Turkey and its trading partners and found mixed support for the J-curve effect. To reduce the aggregation bias further, Yazici and Klasra (2010) investigated response of two sectors of Turkish economy, i.e.…”

Section: Introductionmentioning

confidence: 99%

The Turkey-US commodity trade and the asymmetric J-curve

Bahmani‐Oskooee

Karamelikli

2020

Econ Change Restruct

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Unlike past studies, recent studies try to separate currency appreciations from depreciations and show that indeed, the effects of exchange rate changes on the trade balance are asymmetric. We add to this literature by considering the response of the trade balance of 45 industries that trade between Turkey and the USA We find that the real lira-dollar rate has short-run asymmetric effects in 28 out of 45 industries. Short-run asymmetric effects translate into the long-run asymmetric effects in only 13 industries. While our findings are industry specific, additional analysis revealed that in some industries while depreciations had significant effects, appreciations did not, in some other industries the opposite was true. Such findings were hidden by the estimates of past traditional linear models.

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“…demonstrated that holding green corporate bonds by the central bank may aid in managing the negative impact of climate change on financial stability.Second strand discusses the role of interest rates in climate change mitigation but through energy markets. Almahadin et al (2017),Benigno and Thoenissen (2008),Celik and Kaya (2010),Missio et al (2015),Sehrawat andGiri, (2017), andSokolov et al (2011) have shown that the impact of interest rates on economic performance is different amongst developing vs the developed world. Further, they have suggested that the stability of interest rates might yield a better performing economy.…”

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confidence: 99%

Role of monetary policy on CO2 emissions in India

Pradeep

2021

SN Bus Econ

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The study investigates the impact of monetary policy on CO 2 emissions while controlling for income, trade, foreign direct investment (FDI) and accounting for structural breaks using annual data from 1971 to 2014. By utilizing the extended environmental Kuznets curve (EKC) framework and dynamic ARDL simulations, the results reveal that the Kuznets curve is a long-run phenomenon for India, not a short run. Moreover, interest rates are identified to possess a significantly positive relation with emissions in the short as well as long run. This indicates the sub-optimality of the present monetary policy for sustainable growth. Hence, it suggests incorporating environmental impacts into the central bank's framework. Additionally, trade is found to be inelastic and weakly beneficial for the environment, while FDI is elastic and significantly detrimental. The latter evidence supports Pollution Haven Hypothesis. Further, following Itkonen (Itkonen, Energy, 2012) arguments, the study demonstrates that inclusion of the energy-use term as a determinant of CO 2 emissions for India underestimates the turning point of the long-run Kuznets curve and the total effect of income on emissions. Consequently, such a model yields incorrect estimates.

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Real exchange rates and bilateral trade dynamics of Turkey: panel cointegration approach

Cited by 22 publications

References 14 publications

Determinants of Jordan-Turkish bilateral trade balance

Determinants of Jordan-Turkish bilateral trade balance

The Turkey-US commodity trade and the asymmetric J-curve

Role of monetary policy on CO2 emissions in India

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