Browsing by Subject "Balance of payments"
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Item Open Access An alternative look at balance-of-payments puzzle : structural decomposition of accounts of 16 emerging markets(Bilkent University, 2006) Şahbaz, Ahmet UssalThe empricial evidence on pro-growth effect of capital account liberalization is inconclusive. I argue that, after liberalization, the link between structural finance needs of developing countries and debt flows lost its importance. Instead, the flight of resident capital and unproductive reserve accumulation have created new financing needs, limiting the augmentation of saving pools of developing countries and hence growth. I build four new components from balance-of-payments account that make it possible to track the new financing patterns. I investigate relationship between these components for 15 emerging market countries. I also make a case study for Turkey using vector autoregression technique to establish a causality link between dynamics of the new structural aggregates.Item Open Access Devaluation as a balance of payments corrective measure in Turkey(Bilkent University, 1990) Öztürk, ZeynepThe main purpose of this study is to examine emiprically whether or not devaluation could be relied upon as a means fo r correcting the balance of payments deficits in Turkey. The time period is the years between 1968-1984. In this study, an international trade model for Turkey is established to find out price and income elasticities of import and export demands. Restricted form of Marshal 1-Lerner condition (Harberger condition) is applied to see the effectiveness of devaluation. Import and export demands functions are estimated by both Ordinary Least Square and Two Stage Least Square methods to see how Turkey's case fits into the methodological controversy. Another issue considered is the choice between static and dynamic formulations of the export and import functions. It is found that import demand of Turkey is income elastic but price inelastic, whereas export demand for Turkey is elastic both w ith respect to the relative prices and income. Devaluation con be used as an effective tool in correcting the balance of payments in Turkey according to the study’s findings.