ANALYSIS OF FINANCIAL CONVERGENCE WITH UNIT ROOT TESTS IN FRAGILE FIVES COUNTRIES
KIRILGAN BEŞLİ ÜLKELERİNDE FİNANSAL YAKINSAMANIN BİRİM KÖK TESTLERİ İLE ANALİZİ

Author : Yavuz ÖZEK - Halil Oğuzhan ERGÜR
Number of pages : 237-245

Abstract

The convergence hypothesis is subject to empirical studies on many macroeconomic indicators along with the developments in economics and econometrics theories. In this study we investigated financial convergence in Brazil, India, Indonesia, South Africa and Turkey named of fragile five with unit root tests. In the study covering the period of 1980-2017, financial development index (FDI) was used as a variable. According to linear unit root test results there is no financial convergence in all countries. The Fourier unit root test results show financial divergence in Brazil, India, Indonesia, South Africa and financial convergence in Turkey. In all countries subject to empirical analysis, financial convergence has begun in the post-2000 period.

Keywords

Convergence, Financial Development, Unit Root

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