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 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 39 Issue: 19
  • Publication Date: 2007
  • Doi Number: 10.1080/00036840600707274
  • Journal Name: APPLIED ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.2441-2449
  • Istanbul University Affiliated: Yes

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.