DOES COUNTRY CREDIT RATING AFFECT CURRENT DEFICIT ACCOUNT: THE CASE OF TURKEY (1992-2014)
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 t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Juraj Dobrila University of Pula
2017-07-01
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| Series: | Review of Innovation and Competitiveness |
| Subjects: | |
| Online Access: | https://hrcak.srce.hr/file/273246 |
| Summary: | 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. |
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| ISSN: | 1849-8795 1849-9015 |