The Analysis of External Debt Sustainability by Periodic Unit Root Test with Structural Break: The Case of Turkey

Ozlem Goktas, Aycan Hepsag


The aim of this study is to investigate external debt sustainability using the periodic unit root
rest with structural break which is introduced by Boswijk and Franses (1995) and then
developed by Evans (2006). In order to test the hypothesis, we use quarterly Turkish data
measuring the ratio of external debt stock to GDP that covers the period from the first quarter
of 1990 to the third quarter of 2012. The empirical results support that the ratio of external
debt stock to GDP has the periodic behavior under structural change and follows a
nonstationary periodic process with structural break. According to the empirical findings, it is
argued that the external debt is unsustainable in Turkey.

Full Text:



Copyright (c) 2015 Ozlem Goktas, Aycan Hepsag

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Research in Applied Economics ISSN 1948-5433


Copyright © Macrothink Institute   

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.