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Sustainability of Current Account Deficit in Turkey (1989-2014)

Author

Listed:
  • Z beyir Turan

    (Department of Economics, Nigde University, FEAS, Nigde, Turkey)

  • Ayberk Nuri Berkman

    (Department of Banking and Finance, Nigde University, FEAS, Nigde, Turkey)

  • Asl han Nakibo lu

    (Department of Economics, Nigde University, FEAS, Nigde, Turkey)

Abstract

The current account deficit, as a frequently disputable phenomenon of Turkish economy, is considered as one of the main causes of the crises in the economy. The current account deficit is one of the important problems in some developed countries as well as in developing countries. Indeed, the long-term sustainability of such an incident which results from expenditures in excess of the income or investments in excess of the savings in a country is subject to discussion. Despite its experience of a rapid process of change following the decisions of 24th January 1980, the Turkish banking sector has been severely damaged during the crisis of November 2000 and February 2001 in particular. The global financial crisis of the year 2008, like the rest of the world, has also increased uncertainties in Turkey along with a reduction in demand, a decline in production which, in turn, led to the emergence of negative impacts on the real and financial sectors. The aim of this study is to examine the sustainability of current account dcflcit in Turkey between the years 1989 and 2014. The technical analysis conducted with the econometric model is also supported by a variety of data analysis.

Suggested Citation

  • Z beyir Turan & Ayberk Nuri Berkman & Asl han Nakibo lu, 2016. "Sustainability of Current Account Deficit in Turkey (1989-2014)," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 807-812.
    • Handle: RePEc:eco:journ1:2016-02-59
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    References listed on IDEAS

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    Cited by:

    1. Vasif Abioglu & Suleyman Koc & Ibrahim Bakirtas, 2021. "The sustainability of the Turkish current account: Smooth structural break and asymmetric adjustments," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3916-3929, July.

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    More about this item

    Keywords

    Current Account Deficit; Export; Import; Sustainability; Economic Crisis;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F30 - International Economics - - International Finance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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