Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests
In this paper, current account sustainability of Turkey is analyzed in a nonlinear framework. Various nonlinear unit root tests have been used to test for structural break, sign and size nonlinearity. We have tested structural break and size nonlinearity separately and structural break-sign and size...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Editura ASE Bucuresti
2015-09-01
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| Series: | Romanian Economic Journal |
| Subjects: | |
| Online Access: | http://www.rejournal.eu/article/current-account-turkey-sustainable-evidence-nonlinear-unit-root-tests |
| _version_ | 1818162572247957504 |
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| author | Serkan Taştan Kıvanç Halil Arıç |
| author_facet | Serkan Taştan Kıvanç Halil Arıç |
| author_sort | Serkan Taştan |
| collection | DOAJ |
| description | In this paper, current account sustainability of Turkey is analyzed in a nonlinear framework. Various nonlinear unit root tests have been used to test for structural break, sign and size nonlinearity. We have tested structural break and size nonlinearity separately and structural break-sign and size-sign nonlinearities simultaneously. Only considering the size nonlinearity, we have found that the current account of Turkey is sustainable. Thus, the size nonlinearity, in other words the speed of reversion to equilibrium, is essential for the current account sustainability of Turkey. We have also found that the speed of adjustment towards equilibrium is symmetric, while considering size and sign nonlinearities simultaneously. |
| first_indexed | 2024-12-11T16:35:48Z |
| format | Article |
| id | doaj.art-2eebdc3c15c849e8a2c32d2dbbbcf2f2 |
| institution | Directory Open Access Journal |
| issn | 1454-4296 2286-2056 |
| language | English |
| last_indexed | 2024-12-11T16:35:48Z |
| publishDate | 2015-09-01 |
| publisher | Editura ASE Bucuresti |
| record_format | Article |
| series | Romanian Economic Journal |
| spelling | doaj.art-2eebdc3c15c849e8a2c32d2dbbbcf2f22022-12-22T00:58:28ZengEditura ASE BucurestiRomanian Economic Journal1454-42962286-20562015-09-01XVIII5795114Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root TestsSerkan Taştan 0Kıvanç Halil Arıç 1Cumhuriyet University,58140 Sivas, Turkey, e-mail: stastan@cumhuriyet.edu.trCumhuriyet University, Department of International Trade and Logistics, 58140 Sivas, Turkey, e-mail: halilaric@gmail.comIn this paper, current account sustainability of Turkey is analyzed in a nonlinear framework. Various nonlinear unit root tests have been used to test for structural break, sign and size nonlinearity. We have tested structural break and size nonlinearity separately and structural break-sign and size-sign nonlinearities simultaneously. Only considering the size nonlinearity, we have found that the current account of Turkey is sustainable. Thus, the size nonlinearity, in other words the speed of reversion to equilibrium, is essential for the current account sustainability of Turkey. We have also found that the speed of adjustment towards equilibrium is symmetric, while considering size and sign nonlinearities simultaneously.http://www.rejournal.eu/article/current-account-turkey-sustainable-evidence-nonlinear-unit-root-testsCurrent accountsustainabilityunit rootnonlinearity |
| spellingShingle | Serkan Taştan Kıvanç Halil Arıç Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests Romanian Economic Journal Current account sustainability unit root nonlinearity |
| title | Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests |
| title_full | Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests |
| title_fullStr | Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests |
| title_full_unstemmed | Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests |
| title_short | Is Current Account of Turkey Sustainable ? Evidence from Nonlinear Unit Root Tests |
| title_sort | is current account of turkey sustainable evidence from nonlinear unit root tests |
| topic | Current account sustainability unit root nonlinearity |
| url | http://www.rejournal.eu/article/current-account-turkey-sustainable-evidence-nonlinear-unit-root-tests |
| work_keys_str_mv | AT serkantastan iscurrentaccountofturkeysustainableevidencefromnonlinearunitroottests AT kıvanchalilarıc iscurrentaccountofturkeysustainableevidencefromnonlinearunitroottests |