| Summary: | External borrowing comes up as a result of savings-investment deficit. Some of belonging to the state of this debt determines budget deficit, some of belonging to the private sector of this debt determines financing needs of private sector. In terms of contribution of financing needs of private sector to fixed capital formation, external borrowing has a direct impact on economic growth and development is concerned. Borrowing from closing the budget deficit in the classic sense, rather than for Turkey's economy will be decisive in shaping the economic policies in order to finance of investments. This aim, By analyzing the 1998-2014 period for Turkey's economy if external borrowing is selected as a method of financing investment spending is investigated by using Multivariate Cointegration Analysis
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