Asymmetric relationship between interest rates and exchange rates: Evidence from Turkey

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dc.authoridKaramelikli, Huseyin/0000-0001-7622-0972
dc.contributor.authorKaramelikli, Huseyin
dc.contributor.authorKarimi, Mohammad Sharif
dc.date.accessioned2024-09-29T15:50:42Z
dc.date.available2024-09-29T15:50:42Z
dc.date.issued2022
dc.departmentKarabük Üniversitesien_US
dc.description.abstractThis paper deals with the dynamic relationship between the interest rate and exchange rate using the data from the Turkish economy. Macroeconomic variables possess both asymmetric and non-linear features; however, most of the empirical research relating to the dynamics of the exchange rate has been conducted only within a linear framework. Therefore, in this paper, a non-linear autoregressive distributed lag (NARDL) model is used to explore asymmetrical relations in the long-run. The pieces of evidence provided in this article show that an increase in the domestic interest rate has a more robust effect on the exchange rate compared to a decrease of the interest rate. The results further indicate that the impact of the domestic interest rate in the short-run is different from their long-run effects. The linear models which neglect asymmetric relation can yield misleading results by showing no relationship between the two variables in the long-run. This paper shows that there is a robust and stable but asymmetric relationship between the interest rate and exchange rate in the long-run.en_US
dc.identifier.doi10.1002/ijfe.2213
dc.identifier.endpage1279en_US
dc.identifier.issn1076-9307
dc.identifier.issn1099-1158
dc.identifier.issue1en_US
dc.identifier.scopus2-s2.0-85091008032en_US
dc.identifier.scopusqualityQ2en_US
dc.identifier.startpage1269en_US
dc.identifier.urihttps://doi.org/10.1002/ijfe.2213
dc.identifier.urihttps://hdl.handle.net/20.500.14619/3691
dc.identifier.volume27en_US
dc.identifier.wosWOS:000569985600001en_US
dc.identifier.wosqualityQ2en_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherWileyen_US
dc.relation.ispartofInternational Journal of Finance & Economicsen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectempirical economicsen_US
dc.subjectexchange ratesen_US
dc.subjectNARDLen_US
dc.subjectnon-linear co-integrationen_US
dc.subjectinterest ratesen_US
dc.titleAsymmetric relationship between interest rates and exchange rates: Evidence from Turkeyen_US
dc.typeArticleen_US

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