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Does credit composition matter for current account dynamics? Evidence from Turkey

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  • Nazli Toraganli
  • Hasan Murat Ertugrul

Abstract

Based on a dynamic approach using the Kalman filter we depict effects of time-varying interactions between different components of credit stock on the current account in the Turkish Economy for the period 2002Q3–2014Q3. We decompose the credit stock into consumer and non-financial corporate sector credit and show empirically that both types of credit stock have negative effects on the current account dynamics.

Suggested Citation

  • Nazli Toraganli & Hasan Murat Ertugrul, 2016. "Does credit composition matter for current account dynamics? Evidence from Turkey," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(8), pages 1090-1100, November.
    • Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1090-1100
    DOI: 10.1080/09638199.2016.1188974
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    References listed on IDEAS

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    Cited by:

    1. Oguzhan Cepni & Yavuz Selim Hacihasanoglu & Muhammed Hasan Yilmaz, 2020. "Credit decomposition and economic activity in Turkey: A wavelet-based approach," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 20(3), pages 109-131.
    2. Egzona Hani Selimi & Milan Eliskovski, 2018. "The effect of household and enterprise credit on current account balance: Evidence from the Republic of North Macedonia," Working Papers 2018-09, National Bank of the Republic of North Macedonia.
    3. Deniz Güvercin, 2020. "Boundaries on Turkish export-oriented industrialization," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-15, December.

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