GROWTH EFFECTS OF CURRENCY MISALIGNMENT AND CAPITAL FLIGHT IN TURKEY
Journal: Bulletin of Monetary Economics and Banking
Year: 2023

This study examines the growth effects of real exchange rate (RER) misalignment and capital flight in Turkey during the period 1981-2019. The World Bank’s residual method suggests that capital flight is a widespread problem in Turkey and the Single Equation Approach adopted to delineate the series of RER misalignment identifies that Turkey’s RER is significantly misaligned throughout the sample period. Their growth effects are then examined using the autoregressive distributed lag (ARDL) bounds