TY  - JOUR
TI  - IS THERE A RELATIONSHIP BETWEEN SHORT-TERM CAPITAL MOVEMENTS AND BALANCE OF FOREIGN TRADE? AN EMPIRICAL STUDY ON TURKEY
AB  - This work inquires whether there's a correlation between short-term capital movements and thenet balance of foreign trade. To this end, the annual data pertaining to portfolio investment and netforeign trade balance of Turkey data received from the IMF for the period between 1986-2017 havebeen tested with the ARDL bounds test approach and were studied in regard to Error CorrectionModel (ECM). And to query short-term relationship, Granger Test over the ECM Model has beenapplied. In the light of the analyzes, a relationship was found between the variables in both longand short terms. The literature shows a number of studies on the impact of capital movements onvarious macro-economic variables, yet none on the empirical evidence of the impact andcorrelation of those movements on net foreign trade balance. The purpose of this study is to test therelationship between capital inflows and foreign trade balance and make a contribution to theliterature. Portfolio investments are predominantly used in financing the current account deficit,these flows though result in a foreign trade deficit, which in turn contributes to the current accountdeficit. The result of this study will be significant for policy makers in managing this vicious circle.
AU  - ÇİĞDEM, GÜLGÜN
PY  - 2019
JO  - Akademik Hassasiyetler
VL  - 6
IS  - 11
SN  - 2148-5933
SP  - 353
EP  - 366
DB  - TRDizin
UR  - http://search/yayin/detay/312620
ER  -