GROWTH EFFECTS OF CURRENCY MISALIGNMENT AND CAPITAL FLIGHT IN TURKEY

Authors

Abdullahil Mamun, International Islamic University ChittagongFollow
Harun Bal, Cukurova UniversityFollow
Shahanara Basher, University of Science and Technology ChittagongFollow
Md Mahi Uddin, International Islamic University ChittagongFollow
Nazamul Hoque, International Islamic University ChittagongFollow
Mohammad Nazim Uddin, International Islamic University ChittagongFollow

Document Type

Article

Abstract

This study examines the growth effects of real exchange rate (RER) misalignment and capital flight in Turkey during the period 1981-2019. The World Bank’s residual method suggests that capital flight is a widespread problem in Turkey and the Single Equation Approach adopted to delineate the series of RER misalignment identifies that Turkey’s RER is significantly misaligned throughout the sample period. Their growth effects are then examined using the autoregressive distributed lag (ARDL) bounds approach and we document that RER misalignment degrades per capita output growth while growth faltering capital flight is evident in the presence of policy variables along with currency misalignment.

Recommended Citation

Mamun, Abdullahil; Bal, Harun; Basher, Shahanara; Uddin, Md Mahi; Hoque, Nazamul; and Uddin, Mohammad Nazim (2023) "GROWTH EFFECTS OF CURRENCY MISALIGNMENT AND CAPITAL FLIGHT IN TURKEY," Bulletin of Monetary Economics and Banking: Vol. 26: No. 2, Article 5.
DOI: https://doi.org/10.59091/1410-8046.2069
Available at: https://bulletin.bmeb-bi.org/bmeb/vol26/iss2/5

First Page

168

Last Page

210

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Bangladesh

Affiliation

International Islamic University Chittagong