Financial Crises in Retrospect of Turkish Economy: Evidence from a Probit Model 1970-2018

dc.cclicenceCC-BY-NCen
dc.contributor.authorFethi, Sami
dc.contributor.authorKahyalar, Neslihan
dc.date.acceptance2020-04-15
dc.date.accessioned2021-05-18T16:17:23Z
dc.date.available2021-05-18T16:17:23Z
dc.date.issued2021-01-03
dc.description.abstractThis study empirically investigates the determinants of financial crisis which occurred in the Turkish economy in 1994, the late 1997 and 2007 respectively. A probit model is conducted by the main tool to identify the leading indicators of financial crisis using a sample of annual data covering the period 1970-2018. The evidence found in this paper indicates that terms of trade shock (TT), per capita income growth (CAPG) and M2 Reserve (M2R) are the best indicators, which determine financial crisis in the Turkish economy. Besides, real exchange misalignment (RER), current account balance (CABR) and annual reserve money to GDP (ARM) were not found significant in favour of the financial crisis. Based on our estimated results, (i) Turkish financial system may need a new law and regulation framework to improve the strength of the Turkish financial system. (ii) In the Turkish economy, human sources and facilities such as electronic communication have to be used efficiently. (iii) Macroeconomic stability and political soundness are the keys to the solution of the dilemma.en
dc.funderNo external funderen
dc.identifier.citationFethi, S. and Kahyalar, N. (2021) Financial Crises in Retrospect of Turkish Economy: Evidence from a Probit Model 1970- 2018. The Allied Social Science Association (ASSA) 2021- American Economic Association - Virtual Annual Meeting: Poster Session on Challenges and Opportunities in Emerging Markets and Economies, January 3-5 2021.en
dc.identifier.urihttps://dora.dmu.ac.uk/handle/2086/20862
dc.language.isoenen
dc.publisherThe Allied Social Science Association (ASSA)en
dc.researchinstituteInstitute for Applied Economics and Social Value (IAESV)en
dc.subjectFinancial Crisisen
dc.subjectProbit Analysisen
dc.subjectTurkish Economyen
dc.titleFinancial Crises in Retrospect of Turkish Economy: Evidence from a Probit Model 1970-2018en
dc.typeConferenceen

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