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Current Account and Financial Account Cyclicality: Evidence from Turkey

Tekcan, Ahmet Enes (2009)
Department of Economics
Abstract
This study analyzes fluctuations in the current account, financial account and their main components in Turkey between 1984 and 2007. Two Stage Least Squares method is used and the empirical model is built up on the base of the study of Clausen and Kandil (2005). Real output growth, price inflation, real effective exchange rates, oil prices, global output growth and European output growth are used as explanatory variables. The estimation results indicate that the empirical model is sufficient to explain cyclicality in the current account balance, in its components and in the financial account balance. However, the model is not sufficient to estimate the changes in financial inflows and outflows. The findings from the estimations report... (More)
This study analyzes fluctuations in the current account, financial account and their main components in Turkey between 1984 and 2007. Two Stage Least Squares method is used and the empirical model is built up on the base of the study of Clausen and Kandil (2005). Real output growth, price inflation, real effective exchange rates, oil prices, global output growth and European output growth are used as explanatory variables. The estimation results indicate that the empirical model is sufficient to explain cyclicality in the current account balance, in its components and in the financial account balance. However, the model is not sufficient to estimate the changes in financial inflows and outflows. The findings from the estimations report that real output growth, real effective exchange rate and price inflation are the most important factors to explain the cyclical fluctuations. (Less)
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author
Tekcan, Ahmet Enes
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
"Current Account, Financial Account, Two Stage Least Squares, Non-stationarity", Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1644251
date added to LUP
2009-06-04 00:00:00
date last changed
2010-08-05 14:25:39
@misc{1644251,
  abstract     = {This study analyzes fluctuations in the current account, financial account and their main components in Turkey between 1984 and 2007. Two Stage Least Squares method is used and the empirical model is built up on the base of the study of Clausen and Kandil (2005). Real output growth, price inflation, real effective exchange rates, oil prices, global output growth and European output growth are used as explanatory variables. The estimation results indicate that the empirical model is sufficient to explain cyclicality in the current account balance, in its components and in the financial account balance. However, the model is not sufficient to estimate the changes in financial inflows and outflows. The findings from the estimations report that real output growth, real effective exchange rate and price inflation are the most important factors to explain the cyclical fluctuations.},
  author       = {Tekcan, Ahmet Enes},
  keyword      = {"Current Account,Financial Account,Two Stage Least Squares,Non-stationarity",Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Current Account and Financial Account Cyclicality: Evidence from Turkey},
  year         = {2009},
}