Work

Foreign trade hysteresis: An empirical essay Turkish case

Year: 2024

Type: article

Abstract: The permanent effects of temporary shocks in exchange rates on foreign trade flows are defined as hysteresis. In this study, hysteresis is analyzed on the basis of exchange rate and import relationship. Empirical findings point to the validity of hysteresis in the Turkish economy. Sunk costs are the main dynamics of hysteresis in the Turkish economy. As a matter of fact, hysteresis effects caused by sunk costs are determinant in the sustainability of the current account deficit.

Source: Ege Akademik Bakis (Ege Academic Review)

DOI: 10.21121/eab.20250105

Authors: Koray Yıldırım, Neşe Algan, Harun Bal

Institution: Cukurova University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W4405580146

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