Determinants of current account balance: Evidence from Türkiye
Current account balance, which is followed by all governments and policymakers, is one of the most critical macroeconomic indicators that can affect all dynamics of a country’s general economic environment from different aspects, such as inflation, foreign exchange rates and employment. There is not...
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| Format: | Article |
| Language: | deu |
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Mustafa Süleyman ÖZCAN
2022-09-01
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| Series: | İtobiad |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/2271034 |
| _version_ | 1797628280814174208 |
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| author | Ebru Gül Yılmaz |
| author_facet | Ebru Gül Yılmaz |
| author_sort | Ebru Gül Yılmaz |
| collection | DOAJ |
| description | Current account balance, which is followed by all governments and policymakers, is one of the most critical macroeconomic indicators that can affect all dynamics of a country’s general economic environment from different aspects, such as inflation, foreign exchange rates and employment. There is not any consensus on the determinative factors of the CAB-Current account balance in the literature. Actually, the fact that there isn’t any consensus on the determinative factors of the CAB can be accepted as a natural result of the different structures of each country. Most worldwide studies have focused on just sectoral or just macro indicator-based determinants. With the motivation of taking both sectoral and macroeconomic conditional effects on the current account balance, the theoretical model was set as CAB as the dependent variable and ‘inflation’, ‘foreign direct investments’, ‘export to import ratio’, ‘tourism income’, and ‘growth’ as independent variables. The reason behind choosing tourism as the only sector is the compensation power of the tourism sector on the foreign trade deficit. With the data available for all variables, the time span of this paper was 2008-2019 by using the “ARDL” bounds methodology. The findings showed that there was a long-run and statistically significant positive relationship between the CAB and all independent variables of the model where just foreign exchange appreciation has a negative effect. It is thought that the model established in our research contributes to the literature in terms of including a combination of both macro data and sectoral data on the determinants of the current balance in Turkey. |
| first_indexed | 2024-03-11T10:37:06Z |
| format | Article |
| id | doaj.art-01573c26f65044eb92e143f01eab0fa6 |
| institution | Directory Open Access Journal |
| issn | 2147-1185 |
| language | deu |
| last_indexed | 2024-03-11T10:37:06Z |
| publishDate | 2022-09-01 |
| publisher | Mustafa Süleyman ÖZCAN |
| record_format | Article |
| series | İtobiad |
| spelling | doaj.art-01573c26f65044eb92e143f01eab0fa62023-11-14T09:52:03ZdeuMustafa Süleyman ÖZCANİtobiad2147-11852022-09-011131302132210.15869/itobiad.10780242197Determinants of current account balance: Evidence from TürkiyeEbru Gül Yılmaz0İSTANBUL GELİŞİM ÜNİVERSİTESİCurrent account balance, which is followed by all governments and policymakers, is one of the most critical macroeconomic indicators that can affect all dynamics of a country’s general economic environment from different aspects, such as inflation, foreign exchange rates and employment. There is not any consensus on the determinative factors of the CAB-Current account balance in the literature. Actually, the fact that there isn’t any consensus on the determinative factors of the CAB can be accepted as a natural result of the different structures of each country. Most worldwide studies have focused on just sectoral or just macro indicator-based determinants. With the motivation of taking both sectoral and macroeconomic conditional effects on the current account balance, the theoretical model was set as CAB as the dependent variable and ‘inflation’, ‘foreign direct investments’, ‘export to import ratio’, ‘tourism income’, and ‘growth’ as independent variables. The reason behind choosing tourism as the only sector is the compensation power of the tourism sector on the foreign trade deficit. With the data available for all variables, the time span of this paper was 2008-2019 by using the “ARDL” bounds methodology. The findings showed that there was a long-run and statistically significant positive relationship between the CAB and all independent variables of the model where just foreign exchange appreciation has a negative effect. It is thought that the model established in our research contributes to the literature in terms of including a combination of both macro data and sectoral data on the determinants of the current balance in Turkey.https://dergipark.org.tr/tr/download/article-file/2271034cari i̇şlemler dengesidyyenflasyonbüyüme“ardl” (otoregresif dağıtılmış gecikme modeli)current account balancetourismfdiinflationgrowth“ardl” |
| spellingShingle | Ebru Gül Yılmaz Determinants of current account balance: Evidence from Türkiye İtobiad cari i̇şlemler dengesi dyy enflasyon büyüme “ardl” (otoregresif dağıtılmış gecikme modeli) current account balance tourism fdi inflation growth “ardl” |
| title | Determinants of current account balance: Evidence from Türkiye |
| title_full | Determinants of current account balance: Evidence from Türkiye |
| title_fullStr | Determinants of current account balance: Evidence from Türkiye |
| title_full_unstemmed | Determinants of current account balance: Evidence from Türkiye |
| title_short | Determinants of current account balance: Evidence from Türkiye |
| title_sort | determinants of current account balance evidence from turkiye |
| topic | cari i̇şlemler dengesi dyy enflasyon büyüme “ardl” (otoregresif dağıtılmış gecikme modeli) current account balance tourism fdi inflation growth “ardl” |
| url | https://dergipark.org.tr/tr/download/article-file/2271034 |
| work_keys_str_mv | AT ebrugulyılmaz determinantsofcurrentaccountbalanceevidencefromturkiye |