%0 Journal Article
%T SENSITIVITY OF THE CARRY TRADE INVESTMENTS TO EARNING AND RISK FACTORS: ARDL BOUND TESTING APPROACH FOR TURKEY
%A Asl£¿ G¨¹LER
%J -
%D 2019
%X Carry trade which is based on short-term financial investment by borrowing money in a currency with low interest rates and making portfolio investments in a currency with higher interest currency, is one of the most used investment strategies of recent years. As is known, short-term speculative capital movements cause the fragility of the financial system to increase and its durability decreases. The aim of this study is to determine which variables should be followed by the policies for the prevention of instability which may arise due to carry trade investments. For this purpose, using variables that represent earnings and risk factors, empirical determinants of carry trade investment strategy in Turkey were tested by ARDL bounds testing approach for 2014 January -2018 May period. According to the findings, carry trade investments in Turkey is not sensitive to interest rate differential between countries. On the other hand, exchange rate volatility and return level are important determinants of carry trade investments. In addition, it was concluded that the global volatility level, which is an important risk indicator for foreign investors, is a significant deterrent for carry trade investments. These results suggest that the CBRT's policy rate increase will not cause foreign capital inflow by making the carry trade investments more attractive. For this reason, focusing on policies to ensure the stability of exchange rates instead of activist monetary policies where policy rate is frequently changed, seems to be appropriate to prevent the unstabilizing effects of carry trade investments
%K Carry trade
%K Faiz Oran£¿ Fark£¿
%K D£¿viz Kuru Oynakl£¿£¿£¿
%K D£¿viz Kuru Getirisi
%K VIXX Endeksi
%K Para Politikas£¿
%K Portf£¿y Yat£¿r£¿mlar£¿
%U http://dergipark.org.tr/yead/issue/43937/524100