This study investigates the domestic and external determinants of net capital flows to Turkey. The results of the Johansen cointegration analyses indicate that capital flows to Turkey increase in response to increases in domestic real interest rate, domestic real income growth, and budget balance / appreciation of domestic currency / and decreases in financial fragility and the US real interest rates. It can be said that, higher domestic real returns and improved country creditworthiness attract more foreign capital flows to Turkey. In addition, the decreases in world interest rates enable Turkey to enjoy higher capital flows. The findings are theory consistent and data-acceptable.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/12608842/index.pdf |
| Date | 01 September 2007 |
| Creators | Kara, Serdar Ufuk |
| Contributors | Ozmen, Erdal |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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