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Is Current Account Deficit A Message For Economic Crises For Turkey

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  • SEKMEN, Fuat

Abstract

This Study examines the interaction of current account (CA) deficits with other macroeconomic and demographic variables such as per capita GDP, inflation rate (INF), government consumption (Govc), electric consumption (epw), fertility rate (fert), domestic credit to private sector (Dcr), industry value added (iva), life expectancy for Turkey (lifexp), and population age 65 or above (pop) using specification methods on Least Squares Methods (OLS). The dependent variable is per capita GDP since it represents well-being of a country. Recent debates in the Turkish Congress and in the media are full of acrimony about the accretion of the CA deficits because they believe that huge current account deficit is a sign of an economic crisis in the near future. Thus, this study’s priority is to test whether the CA deficit may deteriorate well-being of Turkey and which in turn cause economic crises or not.

Suggested Citation

  • SEKMEN, Fuat, 2008. "Is Current Account Deficit A Message For Economic Crises For Turkey," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 5(1), pages 49-60.
    • Handle: RePEc:eaa:ijaeqs:v:5:y2008:i:1_4
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    File URL: http://www.usc.es/economet/reviews/ijaeqs514.pdf
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    References listed on IDEAS

    as
    1. SEKMEN, Fuat & SARIBAS, Hakan, 2007. "Cointegration And Causality Among Exchange Rate, Export, And Import: Empirical Evidence From Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 71-78.
    2. Yuan, Jiahai & Zhao, Changhong & Yu, Shunkun & Hu, Zhaoguang, 2007. "Electricity consumption and economic growth in China: Cointegration and co-feature analysis," Energy Economics, Elsevier, vol. 29(6), pages 1179-1191, November.
    3. Altinay, Galip & Karagol, Erdal, 2005. "Electricity consumption and economic growth: Evidence from Turkey," Energy Economics, Elsevier, vol. 27(6), pages 849-856, November.
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    Cited by:

    1. Osman F. Abbasoğlu & Ayşe İmrohoroğlu & Ayşe Kabukçuoğlu, 2019. "The Turkish Current Account Deficit," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 515-536, January.

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    More about this item

    Keywords

    Current account deficit; per capita GDP; inflation rate; and economic crises;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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