Author/Authors :
DEMİRTAŞ, Gökhan Afyon Kocatepe Üniversitesi - Iktisadi ve Idari Bilimler Fakültesi (İİBF) - İktisat Bölümü, Turkey
Title Of Article :
THE ANALYSIS OF THE BILATERAL TRADE BALANCE BETWEEN TURKEY AND GERMANY WITH BOUNDS TEST APPROACH
Abstract :
The aim of this paper is to analyse the bilateral trade balance between Turkey and Germany. For this purpose, recently developed Bounds test cointegration approach based on Autoregressive Distributed Lag model is conducted by using monthly data over the period from 2002 to 2012. According to the estimation results, the real depreciation of the Turkish Lira have a statistically significant positive impact on Turkey’s trade balance with Germany in the short and long run. Inaddition, the empirical results indicate that industrial production indexes taken as a proxy for income of two countries have the expected effects on the trade balance.
NaturalLanguageKeyword :
Real Exchange Rate , Trade Balance , ARDL Model
JournalTitle :
Erciyes University Journal Of Economics and Administrative Sciences
