Skip to the main content

Economic research - Ekonomska istraživanja, Vol. 23 No. 4, 2010.

Original scientific paper

CAPITAL REVERSALS AND EXCHANGE MARKET PRESSURE: EVIDENCE FROM THE AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) BOUNDS TESTS

Mete Feridun

Full text: english pdf 287 Kb

page 11-21

downloads: 949

cite

Abstract

This article examines the relationship between capital reversals and exchange market pressure in Turkey within an autoregressive distributed lag (ARDL) bounds testing and Granger causality framework using monthly data from 1991:12 to 2006:08. The results suggest that capital reversals are in a long-run equilibrium relationship with exchange market pressure. Granger causality tests indicate that there exists short-run and long-run causality running from capital reversals to exchange market pressure, but not vice versa. These findings lend empirical support to the Sudden Stop theory.

Keywords

capital reversals; exchange market pressure; Turkey; ARDL

Hrčak ID:

63239

URI

https://hrcak.srce.hr/63239

Publication date:

1.12.2010.

Article data in other languages: croatian

Visits: 1.767 *