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This study analyses the long-run validity of the purchasing power parity (PPP) between Turkey and its major trading partners (China, Euro Area, Russia, United Kingdom, and United States) by using t...

This study aims to test the long-run validity of purchasing power parity by using Fourier quantile unit root and Fourier cointegration analyses for 12 emerging market economies that practice a flex...

Üçüzaçıklar diğer gelişmekte olan ülkelerde olduğu gibi Türkiye’de de makroekonomikistikrar üzerindeki etkisi bakımından büyük bir öneme sahiptir. Bu çalışmada; cari işlem açıkları, bütçe açıkları ve tasarruf-yatırımaçıkları arasındaki ilişkiyi ifade eden Üçüz Açık Hipotezi, 1960-2014 dönemi verileriyle, Johansen Eşbütünleşme analizi, kısa ve uzun dönem GrangerNedensellik testiyle incelenmiştir. Analiz sonucunda Türkiye örneğinde uzundönemde üçüz açıklar hipotezinin geçerli olduğu bulgusu elde edilmiştir., Triple deficithypothesis implies coexistence of budget deficit, savings-investment deficitand current account deficits. They have a great importance in terms of theirimpact on macroeconomic stability in Turkey as they have in other developingcountries. Therefore, the purpose of the present study is to investigatewhether triple deficits hypothesis is valid for Turkey over the period of1960-2016 using the Johansen cointegration test and the Granger causality testbased on error correction model. It is concluded from the obtained results ofthe cointegration test that there is a long-run relationship among thevariables. The results of the causality test also show that there is causalityrelationship from the budget deficit and the savings-investment deficit to thecurrent account deficit in the long run. Overall, these results indicate thatthe hypothesis of triplets deficits is valid for Turkey over the long run.

This study analyzes the long-run validity of purchasing power parity (PPP) in three types of market economies—developed, emerging, and frontier markets—using the Fourier quantile unit root test. The analyses are conducted on 45 countries, including 10 developed, 20 developing, and 15 frontier market economies, using monthly observations from 1993:1 to 2018:8. Conventional, nonlinear, and Fourier-type unit root tests are also employed for this purpose. The Fourier quantile unit root test results provide more evidence than other tests on the validity of PPP, showing that it is valid in 8 developed, 11 emerging, and 7 frontier market economies.