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VALIDITY OF THIRLWALL’S LAW FOR BRIC-T COUNTRIES: PANEL DATA ANALY-SIS

Year 2019, Issue: 22, 51 - 64, 01.01.2019
https://doi.org/10.18092/ulikidince.423904

Abstract

According to the Thirlwall’s Law, the main factor
which restricts the economic growth in an open economy is the balance of
payments. The aim of this study is to investigate the validity of the Thirlwall
Law for BRIC-T (Brazil, Russi India, China, Turkey) countries for the period between
2000 and 2015. Panel data analysis has been used in the empirical part of the
study. Heterogeneity (vice versa) and cross-sectional dependency of the
variables are examined with some preliminary tests. Respectively, Delta test
and CDlm test have been applied. After proving the stability of the variables
with second generation panel unit root tests, the long-term cointegration
relationship is estimated by Westerlund Durbin-H test. According to the
results, Thirlwall’s Law is not valid for BRIC-T economies.

References

  • Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels, Working Paper No:0435, University of Cambridge.
  • Pesaran, M. H. (2007). A Simple Panel Unit Root Test in The Presence Of Cross-Section Dependence, Journal of Applied Economics, 22, 265-312.
  • Thirlwall, P. A. and Hussain, M. N. (1982). The Balance of Payments Constraint, Capital Flows and Growth Rate Differences Between Developing Countries, Oxford Economic Papers, 34(3), 498-510.

EXAMINATION OF THIRLWALL’S LAW FOR BRIC-T COUNTRIES

Year 2019, Issue: 22, 51 - 64, 01.01.2019
https://doi.org/10.18092/ulikidince.423904

Abstract

Thirwall Kanunu’na göre dışa açık bir ekonomide büyüme
oranını kısıtlayan ana faktör ödemeler dengesi bilançosudur. Bu çalışmadaki
amaç, Thirwall Kanunu’nun 2000-2015 yıllarını kapsayan bir dönemde geçerliliğin
BRIC-T (Brezilya, Rusya, Hindistan, Çin, Türkiye) ülkeleri için sınanmasıdır.
Çalışmanın ampirik kısmında panel veri analizi yapılmıştır. Değişkenlerin
yatay-kesit bağımlılığı içerip içermediği ya da heterojen olup olmadıkları;
Delta ve CDlm gibi ön testler ile test edilmiştir. Serilerin durağanlığı ikinci
kuşak birim kök testleri ile ispat edildikten sonra uzun dönem nedensellik
ilişkisi Westerund Durbin-H testi ile tahmin edilmiştir. Elde edilen sonuçlara
göre, Thirwall Kanunu BRIC-T ekonomilerinde geçerli değildir.  

References

  • Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels, Working Paper No:0435, University of Cambridge.
  • Pesaran, M. H. (2007). A Simple Panel Unit Root Test in The Presence Of Cross-Section Dependence, Journal of Applied Economics, 22, 265-312.
  • Thirlwall, P. A. and Hussain, M. N. (1982). The Balance of Payments Constraint, Capital Flows and Growth Rate Differences Between Developing Countries, Oxford Economic Papers, 34(3), 498-510.
There are 3 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Filiz Erataş Sönmez

Yağmur Sağlam

Publication Date January 1, 2019
Published in Issue Year 2019 Issue: 22

Cite

APA Erataş Sönmez, F., & Sağlam, Y. (2019). VALIDITY OF THIRLWALL’S LAW FOR BRIC-T COUNTRIES: PANEL DATA ANALY-SIS. Uluslararası İktisadi Ve İdari İncelemeler Dergisi(22), 51-64. https://doi.org/10.18092/ulikidince.423904

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