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Capital mobility and foreign debt sustainabilty: some evidence from Turkey

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This paper address the extent of capital mobility and foreign debt sustainability in Turkey over the 1962-2003 period by examining the relationship between saving and investment, and imports and exports, respectively. The empirical investment is based on cointegration, error correction models, and threshold and momentum threshold autoregressive models. Our findings are consistent with the existence of capital mobility and the 'Strong' form of foreign debt sustainability.
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Document Type: Research Article

Affiliations: 1: Department of Economics, Illinois State University, Normal, USA 2: Department of Public Finance, Istanbul University, Turkey 3: Department of Economics, Istanbul University, Turkey

Publication date: 2007-10-01

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