An Empirical Research on the Saving–Investment Relationship for the Turkish Economy

Levent Korap

Makale detayları

An Empirical Research on the Saving–Investment Relationship for the Turkish Economy

Yazarlar:

Levent Korap

Yayıncı:

Kastamonu University

Ana Başlıklar:

Ekonomik Modeller ve Öngörü

Dergi:

Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.182-192

Belge Tipi:

Makale

Yayın Tarihi:

6/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001292575

pISSN:

2147-6012

Anahtar kelimeler:

Özet:

 For the research field of international macroeconomics, one of the stylized facts that researchers often observe empirically is the strong dependency of domestic investments to national savings. Feldstein and Horioka 1980 accept such a relationship as an indicator of capital mobility and try to examine how an increase in the national saving level finances domestic investments. The authors perceive this as a puzzle for the assumption that world capital markets are well-integrated. The paper aims to test the validity of such a relationship for the case of the Turkish economy. Not only does this study take account of the estimation result that there exists evidence of a cointegration as an estimation methodology between domestic investments and national savings for the time span 1975 - 2015, but it also enlarges the research area to the sensitivity of findings to the endogenous breaks, and then estimates some regime changes. This study finds a Feldstein  Horioka FH coefficient highly smaller than a unity value, and observes some structural breaks associated with policy transformation or macroeconomic crises periods of the economy.

 For the research field of international macroeconomics, one of the stylized facts that researchers often observe empirically is the strong dependency of domestic investments to national savings. Feldstein and Horioka 1980 accept such a relationship as an indicator of capital mobility and try to examine how an increase in the national saving level finances domestic investments. The authors perceive this as a puzzle for the assumption that world capital markets are well-integrated. The paper aims to test the validity of such a relationship for the case of the Turkish economy. Not only does this study take account of the estimation result that there exists evidence of a cointegration as an estimation methodology between domestic investments and national savings for the time span 1975 - 2015, but it also enlarges the research area to the sensitivity of findings to the endogenous breaks, and then estimates some regime changes. This study finds a Feldstein  Horioka FH coefficient highly smaller than a unity value, and observes some structural breaks associated with policy transformation or macroeconomic crises periods of the economy.

 For the research field of international macroeconomics, one of the stylized facts that researchers often observe empirically is the strong dependency of domestic investments to national savings. Feldstein and Horioka 1980 accept such a relationship as an indicator of capital mobility and try to examine how an increase in the national saving level finances domestic investments. The authors perceive this as a puzzle for the assumption that world capital markets are well-integrated. The paper aims to test the validity of such a relationship for the case of the Turkish economy. Not only does this study take account of the estimation result that there exists evidence of a cointegration as an estimation methodology between domestic investments and national savings for the time span 1975 - 2015, but it also enlarges the research area to the sensitivity of findings to the endogenous breaks, and then estimates some regime changes. This study finds a Feldstein  Horioka FH coefficient highly smaller than a unity value, and observes some structural breaks associated with policy transformation or macroeconomic crises periods of the economy.

 For the research field of international macroeconomics, one of the stylized facts that researchers often observe empirically is the strong dependency of domestic investments to national savings. Feldstein and Horioka 1980 accept such a relationship as an indicator of capital mobility and try to examine how an increase in the national saving level finances domestic investments. The authors perceive this as a puzzle for the assumption that world capital markets are well-integrated. The paper aims to test the validity of such a relationship for the case of the Turkish economy. Not only does this study take account of the estimation result that there exists evidence of a cointegration as an estimation methodology between domestic investments and national savings for the time span 1975 - 2015, but it also enlarges the research area to the sensitivity of findings to the endogenous breaks, and then estimates some regime changes. This study finds a Feldstein  Horioka FH coefficient highly smaller than a unity value, and observes some structural breaks associated with policy transformation or macroeconomic crises periods of the economy.

Makale detayları

An Empirical Research on the Saving–Investment Relationship for the Turkish Economy

Yazarlar:

Levent Korap

Yayıncı:

Kastamonu University

Ana Başlıklar:

Ekonomik Modeller ve Öngörü

Dergi:

Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.182-192

Belge Tipi:

Makale

Yayın Tarihi:

6/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001292575

pISSN:

2147-6012

Feldstein – Horioka (FH) Puzzle

Cointegration

Turkish EconomyFeldstein – Horioka (FH) Sorunsalı

Eşbütünleşim

Türkiye Ekonomisi

Sayı

Makale detayları

An Empirical Research on the Saving–Investment Relationship for the Turkish Economy

Yazarlar: Levent Korap

Yayıncı: Kastamonu University

Ana Başlıklar: Ekonomik Modeller ve Öngörü

Dergi: Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.182-192

Belge Tipi: Makale

Yayın Tarihi: 6/2023

Belge Dili: İngilizce

Document ID (Org No.): 2001292575

pISSN: 2147-6012

Feldstein – Horioka (FH) Puzzle

Cointegration

Turkish EconomyFeldstein – Horioka (FH) Sorunsalı

Eşbütünleşim

Türkiye Ekonomisi

Sayı

Yazarlar:

Levent Korap

Yayıncı:

Kastamonu University

Ana Başlıklar:

Ekonomik Modeller ve Öngörü

Dergi:

Kastamonu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Vol.25 Issue 1, pp.182-192

Belge Tipi:

Makale

Yayın Tarihi:

6/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001292575

pISSN:

2147-6012