Asymmetric Effect of Globalization on the Interest Rates on External Debt: The Case of Turkey

Rasim YILMAZ; Jülide YALÇINKAYA KOYUNCU

Makale detayları

Asymmetric Effect of Globalization on the Interest Rates on External Debt: The Case of Turkey

Yazarlar:

Rasim YILMAZ | Jülide YALÇINKAYA KOYUNCU

Yayıncı:

Denta Florya ADSM Limited Company

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Social Sciences Research Journal 2019 Vol.8 Issue 1, pp.189-193

Belge Tipi:

Makale

Yayın Tarihi:

2/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000605747

Sıklık:

Üç Aylık

eISSN:

2147-5237

Özet:

 


This study empirically examines the short-run and long-run asymmetry between the series of globalization and the interest rate on external debt for the years from 1970 to 2015 for Turkey by employing the Nonlinear Auto-Regressive Distributed Lag (NARDL) model. Estimation results show that there is a statistically significant nonlinear relationship between globalization and the interest rate on external debt for the case of Turkey. We identified a long-run but not a short-run asymmetry between two series. According to the findings, when the degree of globalization in Turkey increases by 1%, then the interest rate on the external debt commitments drops by 3.43%. On the other hand, the interest rate on external debt commitments rises by 3.07% in the long-run when the degree of globalization drops by 1%. Diagnostic test results also reveal that our model does not contain any problems of autocorrelation, heteroscedasticity, misspecification, and non-normality.

.

 

This study empirically examines the short-run
and long-run asymmetry between the series of globalization and the interest
rate on external debt for the years from 1970 to 2015 for Turkey by employing
the Nonlinear Auto-Regressive Distributed Lag
(NARDL) model. Estimation results show that there is a statistically
significant nonlinear relationship between globalization and the interest rate
on external debt for the case of Turkey. We identified a long-run but not a
short-run asymmetry between two series. According to the findings, when the
degree of globalization in Turkey increases by 1%, then the interest rate on
the external debt commitments drops by 3.43%. On the other hand, the interest
rate on external debt commitments rises by 3.07% in the long-run when the
degree of globalization drops by 1%. Diagnostic test results also reveal that
our model does not contain any problems of autocorrelation, heteroscedasticity,
misspecification, and non-normality.

Makale detayları

Asymmetric Effect of Globalization on the Interest Rates on External Debt: The Case of Turkey

Yazarlar: Rasim YILMAZ | Jülide YALÇINKAYA KOYUNCU

Yayıncı: Denta Florya ADSM Limited Company

Ana Başlıklar: Sosyoloji & antropoloji

Dergi: Social Sciences Research Journal 2019 Vol.8 Issue 1, pp.189-193

Belge Tipi: Makale

Yayın Tarihi: 2/2019

Belge Dili: İngilizce

Document ID (Org No.): 2000605747

Sıklık: Üç Aylık

eISSN: 2147-5237

Sayı

Yazarlar:

Rasim YILMAZ | Jülide YALÇINKAYA KOYUNCU

Yayıncı:

Denta Florya ADSM Limited Company

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Social Sciences Research Journal 2019 Vol.8 Issue 1, pp.189-193

Belge Tipi:

Makale

Yayın Tarihi:

2/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000605747

Sıklık:

Üç Aylık

eISSN:

2147-5237