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https://doi.org/10.32728/ric.2017.32/2

DOES COUNTRY CREDIT RATING AFFECT CURRENT DEFICIT ACCOUNT: THE CASE OF TURKEY (1992-2014)

Ahmet Gulmez ; Department of Economics, Sakarya University, 54100, Turkey
Furkan Besel orcid id orcid.org/0000-0002-5930-9200 ; Department of Public Finance, Sakarya University, 54100, Turkey
Fatih Yardimcioglu ; Department of Public Finance, Sakarya University, 54100, Turkey


Puni tekst: engleski pdf 373 Kb

str. 25-42

preuzimanja: 1.087

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Sažetak

In this study the presence and direction of the relationship between the current account deficit and credit rating index for Turkey has been tested using Gregory-Hansen co-integration test, which considers structural breaks and Toda-Yamamoto causality analysis for the period of 1992-2014. Based on the results of empirical applications, it has been concluded that both series are not stable and there is a long-term relationship between the variables. As a result of the Toda-Yamamoto method based on the Granger causality analysis, it has been determined that there is a one-way causal relationship between the variables from current account deficit towards credit rating index.

Ključne riječi

Account deficit; Credit rating; Gregory-Hansen co-integration test; Toda-Yamamoto causality analysis

Hrčak ID:

185325

URI

https://hrcak.srce.hr/185325

Datum izdavanja:

28.7.2017.

Posjeta: 2.082 *