Capital mobility and foreign debt sustainabilty: some evidence from Turkey


Mohammadi H., Cak M. , Cak D.

APPLIED ECONOMICS, vol.39, no.19, pp.2441-2449, 2007 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 39 Issue: 19
  • Publication Date: 2007
  • Doi Number: 10.1080/00036840600707274
  • Title of Journal : APPLIED ECONOMICS
  • Page Numbers: pp.2441-2449

Abstract

This paper address the extent of capital mobility and foreign debt sustainability in Turkey over the 1962-2003 period by examining the relationship between saving and investment, and imports and exports, respectively. The empirical investment is based on cointegration, error correction models, and threshold and momentum threshold autoregressive models. Our findings are consistent with the existence of capital mobility and the 'Strong' form of foreign debt sustainability.