ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 12 (3), pp. 001-016, March, 2018. © International Scholars Journals
Full length Research paper
Relationship between hot money and economic growth: Tar-cointegration and MS-VAR analysis
Melike Bildirici*, Elçin A. Alp and Fazil Kayikçi
Department of Economics, Yildiz Technical University, Barbaros Bulvari Beşiktaş, Istanbul, Turkey.
Accepted 21 December, 2017
Abstract
In this study, the effect of hot money on Turkish economy was studied. The relationship between hot money and economic growth was analyzed through MSVAR-VECM and TAR Cointegration methods by using interest rate, budget deficit, net foreign purchases in the IMKB, the current account deficit, exchange rate and industrial production index variables during 1997 and 2010.
Key words: Growth, hot money, MSVAR-VECM, TAR- cointegration.