The Effect Of Inflation On Currency Substitution (Dollarization) An Analysis: On Türkiye NUTS2 Regions

Author:

DEMİR Fatih1ORCID,SEZGİN Aykut1ORCID

Affiliation:

1. SÜLEYMAN DEMİREL ÜNİVERSİTESİ

Abstract

Dollarization is one of the phenomena that money markets of developing economies frequently experience in the twentieth century. Many studies associate dollarization with inflation through the depreciation of the national currency and compare the results by country and/or region. The aim of this study is to determine the long-term and short-term effects of the inflation rate on dollarization in Turkiye within the scope of regions. In addition to the use of heterogeneous panel data methods in the process of analyzing the subject, obtaining inferences from a regional perspective can be noted as the most important difference from other studies. In the study, quarterly data belonging to 26 statistical regions were used for the period 2007:4-2021:4. According to the DCCE results, the inflation rate in the long term positively affects dollarization in three regions (TRC2, TR42 and TR81). In addition, according to the MG forecast results covering the entire panel, a 10%-point increase in the inflation rate increases dollarization by 2% points in the long term. In order to determine the short-term relationship, Emirmahmutoğlu and Köse (2011) panel causality test was applied. According to the results of the causality test, when the entire panel is taken into account, the inflation rate is not the reason for dollarization. However, heterogeneous results show that the inflation rate is the reason for dollarization in 13 of the 26 regions.

Publisher

Politik Ekonomik Kuram

Subject

General Medicine

Reference58 articles.

1. Ağaslan, E., & Gayaker, S. (2019). Türkiye’de Para İkamesinin Belirleyicileri Doğrusal Olmayan Bir Yaklaşım. Ankara Hacı Bayram Veli Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 21(2), 362-387.

2. Akıncı, O., Özer, Y. B., & Usta, B. (2005). Dolarizasyon Endeksleri: Türkiyedeki Dolarizasyon Sürecine İlişkin Göstergeler. Türkiye Cumhuriyet Merkez Bankası Çalışma Tebliği, 05/17.

3. Alesina, A., & Barro, R. J. (2001). Dollarization. American Economic Review, 91(2), 381-385.

4. Alvarez-Plata, P., & García-Herrero, A. (2008). To dollarize or de-dollarize: Consequences for Monetary Policy. BVA Working Paper, 0921.

5. Arain, H., Han, L., & Meo, M. S. (2019). Nexus of FDI, population, energy production, and water resources in South Asia: a fresh insight from dynamic common correlated effects (DCCE). Environmental Science and Pollution Research, 26, 27128–27137. https://doi.org/10.1007/s11356-019-05903-7

Cited by 1 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Money Supply, Inflation and Dollarization: An Analysis on Türkiye Using Fourier Models;Uluslararası Ekonomi İşletme ve Politika Dergisi;2024-04-30

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3