Domestic credit expansion, capital flows and current account imbalances : empirical analyses for Brazil and Turkey

Download

index.pdf

Date

2012

Author

Yaman, Yasemin

Metadata

Show full item record

Item Usage Stats

222
views

80
downloads

This thesis analyzes the interactions between domestic credit expansion, capital inflows and current account imbalances in a framework of empirical models carried out for Brazil and Turkey. In this context, three vector autoregressive (VAR) models are specified covering the time period between January 2002 and March 2012 for Brazil and 2003 January and 2012 March for Turkey. Real effective exchange rate (REER) and relative yield spreads formed with country specific Embi + indexes are also included in the estimations of the models. The analyses of the models show that capital inflows in these countries trigger the domestic credit expansion which create an upward pressure on import demands and affect current account balances negatively. The results support the implementation of domestic credit tightening policies to reduce the current account imbalances in these countries.

Subject Keywords

Credit, Capital movements., Financial statements.

URI

http://etd.lib.metu.edu.tr/upload/12614950/index.pdf
https://hdl.handle.net/11511/21846

Collections

Graduate School of Social Sciences, Thesis

Suggestions

OpenMETU
Core

Managing financial instability in emerging markets: A Keynesian perspective Akyüz, Yılmaz (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2008-6) The Keynesian analysis of financial instability as developed by Hyman Minsky provides considerable insights into understanding the nature and dynamics of boom-bust cycles driven by international capital flows in emerging markets. Its main policy conclusion that financial control rather than macroeconomic policy holds the key to financial stability is equally valid. There is, however, need to develop a new approach to financial control and place greater emphasis on managing capital inflows than has hitherto ...
Regional income growth disparities and convergence in Turkey : analyzing the role of human capital differences Saral, Güldem; Eraydın, Ayda; Department of City and Regional Planning (2003) The aim of this thesis is to analyze the growth performances of regions in Turkey and the role of human capital in this process within the framework of new growth theory. For this aim, it firstly attempts to investigate the evolution of regional income growth differences in Turkey in the period 1980-2000 and the tendency of provinces in Turkey towards income growth convergence. Secondly, by taking a detailed account of human capital, it aims to explore the contribution of human capital differences towards e...
Business cycles in emerging market economies: the role of financial shocks Pirgan Matur, Eser; Parmaksız, Ömer Kağan; Kılınç, Mustafa; Department of Economics (2014) This dissertation documents the differences in the course of macroeconomic volatility in emerging market economies and advanced countries. Then the dynamics of emerging market business cycles and macroeconomic effects of financial shocks are investigated using a small open economy real business cycle model with credit constraints calibrated to the Turkish economy. The results indicate that the impact of financial shocks crucially depends on whether the firms can access to alternative sources of finance when...
Financialization of state and household indebtedness: the case of Turkey Sema, Gizem; Yalman, Osman Galip; Department of Political Science and Public Administration (2017) The thesis analyzes the financialization in developing countries over the last decade by drawing on the case of Turkey. It addresses the question of how consumer credit has become a part of daily life of wage earners in the age of financialization in Turkey. It focuses on the nature and role of household indebtedness in contemporary capitalism and the current financial and economic crises in Turkey. The theoretical framework based on a critical political economy approach and elaborated macroeconomic, politi...
The Assessment of macroeconomic variability and monetary transmission mechanisms in Turkey with VAR esrimates Baştan, Emine Meltem; Gaygısız Lajunen, Esma; Department of Economics (2012) This thesis investigates the nature of macroeconomic changes by focussing on the monetary policy changes in Turkey between 1990Q1-2011Q4 and assesses the variability of the economy via impulse response functions obtained from VAR analyses. The period of the analyses is characterized with changes of the definitions of monetary aggregates in 2002 and 2007. In order to have consistent monetary series, the new and old series are constructed according to new and old definitions and then analyses are carried out ...

Citation Formats

Y. Yaman, “Domestic credit expansion, capital flows and current account imbalances : empirical analyses for Brazil and Turkey,” M.S. - Master of Science, Middle East Technical University, 2012.