SHORT-RUN AND LONG-RUN DYNAMICS OF TRADE BALANCE: TESTING FOR THE VALIDITY OF MARSHALL-LERNER CONDITION AND J-CURVE HYPOTHESIS IN TURKEY
Growing trade deficit has been one of the major problems of the Turkish economy to date. This study aims to provide empirical insights to policy makers about whether real depreciation or devaluation of Turkish Lira is an effective way of improving the trade deficit. The data employed in this study is quarterly and covers the period of 1987:1 and 2013:3. Recently developed Bounds test to cointegrat