This study aims to investigate the e¤ects of government spending shocks on the real exchange rate and foreign trade balance in Turkey for the period of 2002.I - 2012.IV within a structural VAR framework. The analysis shows that a positive shock to government spending tends to induce real...

Since the beginning of 1990s, Turkey has been exposed to large amounts of capital flows with significant effects on the economic performance. This study examines the determinants of capital flows into Turkey in the traditional 'push-pull' factors approach. To this end, a structural vector...