Market Integration between Turkey and Eurozone Countries

Nicholas Apergis, Chi Keung Marco Lau, Fatma Öğücü Şen, Shixuan Wang

Research output: Contribution to journalArticle

Abstract

This study examines the degree of integration of the Turkish economy and European markets as well as the nature of price convergences across major cities for common categories of goods. A series of unit root tests are performed to assess these price convergences by considering non-linearity, crosssectional correlations, and structural breaks. We find that the Turkish and European markets are wellintegrated. Moreover, Turkey’s highest rate of convergence occurs in the fresh fruits and vegetables (supermarkets) and canned goods (mid-priced stores) categories, suggesting arbitrage activities exist across common categories of goods.
Original languageEnglish
Number of pages13
JournalEmerging Markets Finance and Trade
Early online date19 Sep 2019
DOIs
Publication statusE-pub ahead of print - 19 Sep 2019

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Turkey
Market integration
Euro zone
Price convergence
Arbitrage
Structural breaks
Turkish economy
Fruits and vegetables
Nonlinearity
Supermarkets
Rate of convergence
Unit root tests

Cite this

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Market Integration between Turkey and Eurozone Countries. / Apergis, Nicholas; Lau, Chi Keung Marco; Şen, Fatma Öğücü; Wang, Shixuan.

In: Emerging Markets Finance and Trade, 19.09.2019.

Research output: Contribution to journalArticle

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