Puzzling out the Feldstein-Horioka Paradox for Turkey by a Time-Varying Parameter Approach

Date

2019-01-01

Author

Yıldırım Kasap, Dilem

Metadata

Show full item record

Item Usage Stats

131
views

0
downloads

This study would like to contribute to the existing literature on the Feldstein-Horioka paradox by focusing on Turkey for the period 1960–2014 and by scrutinizing the correlation between domestic savings and investments within a time-varying parameter approach (which is warranted especially for emerging countries due to their political and economic instability and due to the frequency of policy changes). Our time-varying parameter approach is able to capture the impact of various economic and political interruptions on the correlation between domestic savings and investments, especially the military coups in the early 1960s, 1970s, and 1980s, and the economic and financial crises in the mid-1990s, in the late 1990s, and in the early 2000s, as well as the financial crises affecting various countries in the globe in the late 1990s and 2000s. Our empirical analysis suggests a high correlation between domestic savings and investments in the 1960s, which was decreasing (increasing) during the 1970s (1980s), and which was decreasing since the 1990s. Furthermore, in the post-2002 era, with a further decline in the correlation coefficient, the saving–investment nexus has turned out to be statistically insignificant.

URI

https://www.taylorfrancis.com/books/e/9780429436369
https://hdl.handle.net/11511/82172

Relation

The Dynamics of Growth in Emerging Economies: The Case of Turkey

Collections

Department of Economics, Book / Book chapter

Suggestions

OpenMETU
Core

An empirical analysis of the relationship between financial deepening and economic growth: the case of Turkey Esen, Kılıç; Voyvoda, Ebru; Department of Economics (2008) This study aims to investigate the direction of the relationship between financial deepening and economic growth after the completion of financial liberalization in Turkey. In order to do this, an unbalanced panel data set of 49 OECD and emerging countries for 1953-2005 period is examined with Granger causality and panel data estimation techniques. In the light of panel data analysis results, quarterly Turkish time series data for 1987-2006 period is examined by using Granger causality, cointegration and Ve...
The sustainability analysis of Turkish domestic debt Alkan, Feyza; Öcal, Nadir; Department of Economics (2009) In this thesis, sustainability of the Turkish domestic debt is analyzed within the “sustainability indicators” perspective. The fiscal targets of Maastricht Treaty (1992) are imposed on the Turkish fiscal policy and it is investigated whether these targets are the indicators for sustainability in the medium term. Uctum and Wickens’ (2000) methodology is followed in assessing the sustainability of the current fiscal policy and the efficiency of the Maastricht Treaty (1992) targets. Moreover, the vector auto ...
The Relationship between unemployment rate and growth: time series approach for Turkey Akpiliç, Ferdi; Yozgatlıgil, Ceylan; Department of Statistics (2016) This study analyzes the relationship of economic growth and unemployment by using quarterly data for the period 2005:Q1-2016:Q1 for Turkish Economy. Three different versions of Okun’s law which are difference, gap and dynamic versions are investigated in the study. According to results, it is found that Okun’s Law is valid for Turkey. In addition, productivity variable is added to dynamic models to test effect of productivity on unemployment rate and models results reveal positive relationship between produ...
Straddling Two Continents: Social Policy and Welfare Politics in Turkey Aybars, Ayşe İdil (Wiley, 2010-12-01) There has been an increasing academic interest in understanding the dynamics of social policy in the Middle East and developing a conceptual 'model' to account for the particular characteristics of welfare arrangements in the countries of the region. While part of this framework, Turkey represents an exceptional case due to the Europeanization processes the country is undergoing in various policy areas, including social policy. The influence of the European Union on the shape of Turkish social policy, as il...
The J curve at the industrial level: an examination of bilateral trade between Turkey and Germany Gümüştekin, Başak; Akbostancı Özkazanç, Elif; Department of Economics (2012) This thesis examines the relationship between the bilateral real exchange rate and the trade balances of 20 industries in which majority of the trade between Turkey and her leading partner Germany is carried out, both for the short and long run, in search of the existence of any J-curve effect. Using quarterly data over the period 1989:1-2011:3, the relationship is analyzed empirically through the bounds testing approach to cointegration and error correction modeling. The findings show that, although the pa...

Citation Formats

D. Yıldırım Kasap, Puzzling out the Feldstein-Horioka Paradox for Turkey by a Time-Varying Parameter Approach. 2019, p. 71.