Corporate sector liability dollarization and exchange rate balance sheet effect in Turkey
In this study, we investigate the causes and balance sheet effect consequences of Liability Dollarization (LD) of nonfinancial sectors in Turkey. The dynamic panel data Generalized Method of Moments (GMM) results suggest that both sector specific and macroeconomic variables are significant in explaining the corporate sector LD. Industries appear to partially match the currency composition of their debt with their income streams. Devaluations are found to be contractionary, in terms of investments and profits, for sectors with higher LD. Macroeconomic instability affects the performance of the industries negatively. Our results also stress the importance of strong macroeconomic policy stance for an endogenous dedollarization process.
Year of publication: |
2011
|
---|---|
Authors: | Kesriyeli, Mehtap ; Ozmen, Erdal ; Yiğit, Serkan |
Published in: |
Applied Economics. - Taylor & Francis Journals, ISSN 0003-6846. - Vol. 43.2011, 30, p. 4741-4747
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Corporate sector liability dollarization and exchange rate balance sheet effect in Turkey
Kesriyeli, Mehtap, (2011)
-
Corporate Sector Debt Composition and Exchange Rate Balance Sheet Effect in Turkey
Kesriyeli, Mehtap, (2005)
-
Corporate Sector Financial Structure in Turkey : A Descriptive Analysis
Aydin, Halil Ibrahim, (2006)
- More ...