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Zagreb International Review of Economics & Business, Vol.13 No.1 May 2010. -

This study explains and tests structural break of Turkey’s relative trade with the European Union countries for the period of 1982-2007. As a result, the data indicated the evidence of structural break and alternating elasticities’ signs in estimations based upon error component model. After Before Turkey being the member of the ECU a percentage increase in all the relative foreign income, Turkish TOT, real exchange simultaneously and a unit increase in trend is found improving decreasing the relative trade about 0.135 0.78 percentage in total. However, the dynamic fixed effect model did not validate the evidence of structural break. This implies individual differences matter in relative trade not to face structural break.

relative trade; elasticity; Turkey and EU; panel data; testing structural break



Autor: Mustafa Akal - ; Sakarya University, Faculty of Economic and Administrative Sciences, Economics Department, Esentepe Kampusu, Ada

Fuente: http://hrcak.srce.hr/



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