The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit
In this study, the relationship between economic growth and current deficit is analyzed for Turkish economy with the annual data covering the period 1990-2015. Two variables; one is gross domestic product and the other one is current deficit, have taken place in the analyses. Time series data relate...
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| Format: | Article |
| Language: | English |
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Dunarea de Jos University of Galati
2016-12-01
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| Series: | Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics |
| Online Access: | http://www.eia.feaa.ugal.ro/images/eia/2016_3/Guven.pdf |
| _version_ | 1818840648257634304 |
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| author | Emine Turkan AYVAZ GUVEN |
| author_facet | Emine Turkan AYVAZ GUVEN |
| author_sort | Emine Turkan AYVAZ GUVEN |
| collection | DOAJ |
| description | In this study, the relationship between economic growth and current deficit is analyzed for Turkish economy with the annual data covering the period 1990-2015. Two variables; one is gross domestic product and the other one is current deficit, have taken place in the analyses. Time series data related to variables have been tested with ADF and PP Unit Root Tests, and it has been observed that the variables are stationary in the first level. In order to determine the causality relationship between variables, Granger Causality Test has been applied, and a unidirectional causality relationship from economic growth to current deficit has been found. Finally, Regression and Correlation Analyses have been applied in order to determine the direction and the degree of the relationship. The Regression Analysis has revealed that 1% increase in economic growth causes 3.43% increase in current deficit. In other words, the increase in growth causes increase in current deficit by affecting the balance of current account in a bad way. |
| first_indexed | 2024-12-19T04:13:31Z |
| format | Article |
| id | doaj.art-d0212da9a4c44e1ba95e1ee89ec2f9cd |
| institution | Directory Open Access Journal |
| issn | 1584-0409 1584-0409 |
| language | English |
| last_indexed | 2024-12-19T04:13:31Z |
| publishDate | 2016-12-01 |
| publisher | Dunarea de Jos University of Galati |
| record_format | Article |
| series | Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics |
| spelling | doaj.art-d0212da9a4c44e1ba95e1ee89ec2f9cd2022-12-21T20:36:22ZengDunarea de Jos University of GalatiAnnals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics1584-04091584-04092016-12-012233443The Cost of Economic Growth in Turkey: Unavoidable Increase in Current DeficitEmine Turkan AYVAZ GUVEN In this study, the relationship between economic growth and current deficit is analyzed for Turkish economy with the annual data covering the period 1990-2015. Two variables; one is gross domestic product and the other one is current deficit, have taken place in the analyses. Time series data related to variables have been tested with ADF and PP Unit Root Tests, and it has been observed that the variables are stationary in the first level. In order to determine the causality relationship between variables, Granger Causality Test has been applied, and a unidirectional causality relationship from economic growth to current deficit has been found. Finally, Regression and Correlation Analyses have been applied in order to determine the direction and the degree of the relationship. The Regression Analysis has revealed that 1% increase in economic growth causes 3.43% increase in current deficit. In other words, the increase in growth causes increase in current deficit by affecting the balance of current account in a bad way.http://www.eia.feaa.ugal.ro/images/eia/2016_3/Guven.pdf |
| spellingShingle | Emine Turkan AYVAZ GUVEN The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit Annals of Dunarea de Jos University. Fascicle I : Economics and Applied Informatics |
| title | The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit |
| title_full | The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit |
| title_fullStr | The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit |
| title_full_unstemmed | The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit |
| title_short | The Cost of Economic Growth in Turkey: Unavoidable Increase in Current Deficit |
| title_sort | cost of economic growth in turkey unavoidable increase in current deficit |
| url | http://www.eia.feaa.ugal.ro/images/eia/2016_3/Guven.pdf |
| work_keys_str_mv | AT emineturkanayvazguven thecostofeconomicgrowthinturkeyunavoidableincreaseincurrentdeficit AT emineturkanayvazguven costofeconomicgrowthinturkeyunavoidableincreaseincurrentdeficit |