Industry level J-curve in Turkey

Purpose - The purpose of this paper is to examine the J-Curve effect in Turkey at the industry level. Design/methodology/approach - In order to find the long-run and short-run effects, 58 industries (by Standard International Trade Classification Rev. 3) have been identified by using monthly data that covers the periods from January 1990 to December 2012. Present study employs bounds testing procedure, developed by Pesaran and Shin (1999) and Pesaran et al. (2001). Findings - Although results indicate a positive satisfactory effect of real depreciation of lira in 13 industries, the J-Curve effect is detected in only 13 industries. Originality/value - The present study is one of the first studies to analyze the J-Curve effect at the industry level on Turkey. In addition to being one of the first studies, it will be an invaluable addition to the J-Curve literature.