Relationship between hot money and economic growth: Tar-cointegration and MS-VAR analysis


Bildirici M. E. , Alp E. A. , Kayıkcı F.

AFRICAN JOURNAL OF BUSINESS MANAGEMENT, vol.5, pp.1060-1075, 2011 (Journal Indexed in SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 5
  • Publication Date: 2011
  • Title of Journal : AFRICAN JOURNAL OF BUSINESS MANAGEMENT
  • Page Numbers: pp.1060-1075

Abstract

In this study, the effect of hot money on Turkish economy was studied. The relationship between hot money and economic growth was analyzed through MSVAR-VECM and TAR Cointegration methods by using interest rate, budget deficit, net foreign purchases in the IMKB, the current account deficit, exchange rate and industrial production index variables during 1997 and 2010.