Research Information System
BILIG, no.83, pp.281-302, 2017 (SSCI)
The aim of this paper is testing the effect of country risk components that consist of economic, financial and political risks on real sector's economic performance. It is assessed how Azerbaijan, Kazakhstan, Russia and Turkey, whic hare categorized as the transition economies, are affected by risk components, and particularly similarities between the setransition economies. Tire division of risk components has great important in terms of progressive process of industrialization. In the study, manifacturing industrial production index is treated as proxty variable which represents the production capacity o f the countries. The datas for the period of 1998-2015 are analyzed annually with in the panel ARDL method. According to the findings, the country risk components affect the real sector's performance o f the transition economies in a positive way. On the other hand, a positive relation is detected between the real sector's performance and the country risk which is calculated with weighted mean of the risk components. According to panel ARDL model's results, it is found that there is a cointegration relation between the basic risk components (and the country risk) and the real sector's performance, also short-term devations disappear in long term.