Retracted: The Effect of Global Liquidity on Macroeconomic Parameters
Journal Title: Asian Economic and Financial Review - Year 2011, Vol 1, Issue 3
Abstract
Depending on the international economic integration as a result of the increasingglobalization, national economies have become more sensitive to the externaleconomic developments. In such an environment, it is important to understand theconcept of international liquidity and its effects. We analyze the effect of globalliquidity on Turkish economy in this study. To examine the impact of globalliquidation on Turkish economy empirically, Vector Autoregressive (VAR) modeland cointegration tests are applied by using the data between 1990Q1-2008Q3periods. Cointegration results indicate that global liquidation moves together withTurkey?s national income, inflation rate, treasury benchmark interest rate and realexchange rate in the long run. According to the results of Granger causality test, itis seen that there is causality from global liquidation towards Turkey?s keymacroeconomic variables. The impact-response analysis of the VAR model figuresout the increase in global liquidity leads an appreciation in Turkey?s real exchangerate, decreases national income, inflation and interest rates. The results of thevariance decomposition confirms that the longer the period under review, thestronger the effect of global liquidation. Our findings in this study emphasize theimportance of global integration and liquidity on Turkish economy which isarticulated with the world economy.
Authors and Affiliations
Göknur Umutlu| Hacettepe University Dept. of Business Administration, Ankara, Turkey E-mail: goknur@hacettepe.edu.tr, Yılmaz Yıldız| Adress: Hacettepe University Dept. of Business Administration, Ankara, Turkey E-mail: yilmazyildiz@hacettepe.edu.tr
Keywords
Related Articles
- EP ID EP1725
- DOI -
- Views 609
- Downloads 38
AN ANALYSIS FOR CREDIT RATING AND MOMENTUM STRATEGY
In recent years, investors are increasingly concerned about whether the credit risk will affect the return on investment. This paper discusses the credit rating and momentum investment strategy relationship. The research...
GLOBAL ENERGY PRICES AND THE BEHAVIOR OF ENERGY STOCK PRICE FLUCTUATIONS
This study investigates the impact of global crude oil and global natural gas prices on the stocks price movements of the energy companies using multivariate regression and impulse response function analysis. Our data se...
RELEVANCY OF BANKING SERVICES’ COSTS: THE CASE OF LESS DEVELOPED REGIONS IN JORDAN
The current study utilises the quantitative methodology research approach to achieve two objectives. These include; firstly, to identify the main acceptance banking services at Tafila governorate, and secondly, to identi...
INDEPENDENT DIRECTORS’ HUMAN CAPITAL AND FIRM INTERNATIONALIZATION
This study examines the effect of independent directors? human capital (independent directors? educational level, CEO experience and international experience) on firms? decisions toward internationalization. Using a pane...
The Relative Effectiveness of Monetary and Fiscal Policies in Economic Growth: A Case Study of Pakistan
In this study the role of monetary and fiscal policies in economic growth of Pakistan is studied using time series data for the period 1973-2008. The objective of this study is to discover the ways by which fiscal and mo...