Skip to main content
SpringerLink
Log in

Is there a J-curve effect in Turkish services?

  • Research Note
  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

This paper explores the existence of the J-curve effect in Turkish services. The model of Bahmani-Oskooee (Rev Econ Stat 67:500–504, 1985), one of the most commonly employed model in the j-curve literature, is adopted. Using quarterly data from 1986: I to 1998: III, we find that, as a result of real depreciation of Turkish currency, YTL, services trade balance initially improves, then worsens and improves again in the short run. This is a pattern indicating that J-curve effect does not exist in Turkish services sector. We also find that depreciation of Turkish Lira improves the trade balance of the sector in the long run, a result consistent with earlier findings for the whole Turkish economy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Akbostanci E.: Dynamics of trade balance: the Turkish J-curve. Emerg. Mark. Finance Trade 40, 57–73 (2004)

    Google Scholar 

  • Almon S.: The distributed lag between capital appropriations and expenditures. Econometrica 33, 178–196 (1965)

    Article  Google Scholar 

  • Bahmani-Oskooee M.: Devaluation and the J-curve: some evidence from LDCs. Rev. Econ. Stat. 67, 500–504 (1985)

    Article  Google Scholar 

  • Bahmani-Oskooee M.: Devaluation and the J-curve: some evidence from LDCs: Errata. Rev. Econ. Stat. 71, 553–554 (1989)

    Article  Google Scholar 

  • Bahmani-Oskooee M., Malixi M.: More evidence on the J-curve from LDCs. J. Policy Model. 14, 641–653 (1992)

    Article  Google Scholar 

  • Bahmani-Oskooee M., Ratha A.: The J-curve: a literature review. Appl. Econ. 36, 1377–1398 (2004a)

    Article  Google Scholar 

  • Bahmani-Oskooee M., Ratha A.: The J-curve dynamics of US bilateral trade. J. Econ. Finance 28, 32–38 (2004b)

    Article  Google Scholar 

  • Brada J.C., Kutan A.M., Zhou S.: The exchange rate and the balance of trade: the Turkish experience. J. Dev. Stud. 33, 675–692 (1997)

    Article  Google Scholar 

  • Carter C.A., Pick D.H.: The J-curve effect and the US agricultural trade policy. Am. J. Agric. Econ. 71, 712–720 (1989)

    Article  Google Scholar 

  • Dorodian K., Jung C., Boyd R.: The J-curve effect and US agricultural and industrial trade. Appl. Econ. 31, 687–690 (1999)

    Article  Google Scholar 

  • Kuruger, A.D.: Exchange Rate Determination. Cambridge University Press, Cambridge (1983).

    Google Scholar 

  • Lal A.K., Lowinger T.C.: The J-curve: evidence from East Asia. J. Econ. Integr. 17, 397–415 (2002)

    Google Scholar 

  • Magee S.P.: Currency contracts, pass-through, and devaluation. Brook. Papers Econ. Act. 1, 303–325 (1973)

    Article  Google Scholar 

  • Meade, E.E.: Exchange Rates, Adjustment, and the J-curve. Fed. Reserve Bull. 633–644 (1988).

  • Miles M.A.: The effects of devaluation on the trade balance and the balance of payments: some new results. J. Polit. Econ. 87, 600–620 (1979)

    Article  Google Scholar 

  • Noland M.: Japanese trade elasticities and J-curve. Rev. Econ. Stat. 71, 175–179 (1989)

    Article  Google Scholar 

  • Rose A.K.: Exchange rates and trade balance: some evidence from developing countries. Econ. Lett. 34, 271–275 (1990)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of International Trade, Çankaya University, Öğretmenler Cad, No. 14, 06530, Balgat-Ankara, Turkey

    Mehmet Yazici

Authors
  1. Mehmet Yazici
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mehmet Yazici.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Yazici, M. Is there a J-curve effect in Turkish services?. Qual Quant 44, 167–172 (2010). https://doi.org/10.1007/s11135-009-9268-1

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-009-9268-1

Keywords

Search

Navigation