[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ist/imeder/v0y2022i67p1-13.html
   My bibliography  Save this article

Financial Fragility and Basic Economic Indicators in Turkey

Author

Listed:
  • Sule Yuksel Yigiter

    (Erzincan Binali Yıldırım University FEAS Department of Business Administration, Erzincan, Turkey)

  • Salim Sercan Sari

    (Erzincan Binali Yıldırım University FEAS Department of Business Administration, Erzincan, Turkey)

Abstract
Financial fragility emerges as a concept that measures economic resilience against crises. Economies with high financial fragility suffer greater exposure to economic crises. This study was conducted to show how the US dollar exchange rate, BIST 100 Index, foreign trade volume, and credit default swap (CDS) affect financial fragility. The study takes into account the January 2013-January 2021 period by conducting analyses using monthly data. The study examines the possible effects of the dollar exchange rate, BIST 100 Index, foreign trade volume, and CDS on financial fragility using the autoregressive distributed lag (ARDL) bound test. According to the results, the study has determined the BIST 100 Index and CDS premium to have short- and long-term effects on financial fragility. In addition, foreign trade volume was observed to negatively affect financial fragility in the short and long term and the dollar exchange rate to have no long-term effect on financial fragility.

Suggested Citation

  • Sule Yuksel Yigiter & Salim Sercan Sari, 2022. "Financial Fragility and Basic Economic Indicators in Turkey," Muhasebe Enstitusu Dergisi - Journal of Accounting Institute, Istanbul University Business School, vol. 0(67), pages 1-13, July.
    • Handle: RePEc:ist:imeder:v:0:y:2022:i:67:p:1-13
    DOI: :10.26650/MED.1121035
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9007E421A02A40829FC156946E3C7C95
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/jai/article/turkiye-ozelinde-finansal-kirilganlik-ve-temel-ekonomik-gostergeler
    Download Restriction: no
    File URL: https://libkey.io/:10.26650/MED.1121035?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fielding, David & Rewilak, Johan, 2015. "Credit booms, financial fragility and banking crises," Economics Letters, Elsevier, vol. 136(C), pages 233-236.
    2. Mr. Tidiane Kinda & Mr. Montfort Mlachila & Rasmané Ouedraogo, 2016. "Commodity Price Shocks and Financial Sector Fragility," IMF Working Papers 2016/012, International Monetary Fund.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Rinaldi, Laura & Sanchis-Arellano, Alicia, 2006. "Household debt sustainability: what explains household non-performing loans? An empirical analysis," Working Paper Series 570, European Central Bank.
    5. Norman V. Loayza & Claudio Raddatz, 2007. "The Structural Determinants of External Vulnerability," The World Bank Economic Review, World Bank, vol. 21(3), pages 359-387, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Karadima & Helen Louri, 2021. "Determinants of Non-Performing Loans in Greece: the intricate role of fiscal expansion," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 160, Hellenic Observatory, LSE.
    2. Rahman, Syarifah & Masih, Mansur, 2018. "The vulnerability of Islamic bank’s credit risk to oil price shocks: evidence from Malaysia based on ARDL approach," MPRA Paper 106776, University Library of Munich, Germany.
    3. Matteo Foglia, 2022. "Non-Performing Loans and Macroeconomics Factors: The Italian Case," Risks, MDPI, vol. 10(1), pages 1-13, January.
    4. Kirsi Zongo & Marcellin Ndong Ntah & Jean Marie Gankou, 2019. "Determinants of external debt in Mauritania [Déterminants de la dette extérieure en Mauritanie]," Post-Print hal-03577999, HAL.
    5. Eftychia Nikolaidou & Sofoklis Vogiazas, 2014. "Credit Risk Determinants for the Bulgarian Banking System," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 20(1), pages 87-102, February.
    6. Karasoy, Alper, 2022. "Is innovative technology a solution to Japan's long-run energy insecurity? Dynamic evidence from the linear and nonlinear methods," Technology in Society, Elsevier, vol. 70(C).
    7. Bruce Morley, 2009. "A Comparison of Two Alternative Monetary Approaches to Exchange Rate Determination over the Long-Run," International Econometric Review (IER), Econometric Research Association, vol. 1(2), pages 63-76, April.
    8. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    9. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    10. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    11. Noraida, A.W. & Abdul-Rahim, A.S. & Othman, Mohd, 2017. "The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 51(2), pages 143-154.
    12. Georgios Bertsatos & Plutarchos Sakellaris & Mike G. Tsionas, 2022. "Extensions of the Pesaran, Shin and Smith (2001) bounds testing procedure," Empirical Economics, Springer, vol. 62(2), pages 605-634, February.
    13. Md.Yousuf & Raju Ahmed & Nasrin Akther Lubna & Shah Md. Sumon, 2019. "Estimating the Services Sector Impact on Economic Growth of Bangladesh: An Econometric Investigation," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 7(2), pages 62-72, June.
    14. Alessandra Canepa & Fawaz Khaled, 2018. "Housing, Housing Finance and Credit Risk," IJFS, MDPI, vol. 6(2), pages 1-23, May.
    15. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    16. Muhammad Shafiullah & Ravinthirakumaran Navaratnam, 2016. "Do Bangladesh and Sri Lanka Enjoy Export-Led Growth? A Comparison of Two Small South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 114-132, March.
    17. Shuyang Chen, 2021. "The Urbanisation Impacts on the Policy Effects of the Carbon Tax in China," Sustainability, MDPI, vol. 13(12), pages 1-11, June.
    18. Boukraine, Wissem, 2020. "The finance-inequality nexus in the BRICS countries: evidence from an ARDL bound testing approach," MPRA Paper 101976, University Library of Munich, Germany.
    19. Garrod Brian & Almeida António & Machado Luiz, 2023. "Modelling of nonlinear asymmetric effects of changes in tourism on economic growth in an autonomous small-island economy," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(2), pages 154-172, December.
    20. Ngoo Yee Ting & Loi Siew Ling, 2011. "Okun’S Law In Malaysia: An Autoregressive Distributed Lag (Ardl) Approach With Hodrick-Prescott (Hp) Filter," Journal of Global Business and Economics, Global Research Agency, vol. 2(1), pages 95-103, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ist:imeder:v:0:y:2022:i:67:p:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/isisttr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.