The Relationship Between the Budget Deficit and Current Account Deficit in Turkey

Authors

  • Seyfettin Erdoğan İstanbul Medeniyet University, Faculty of Political Sciences, Department of Economics
  • Durmuş Çağrı Yıldırım Recep Tayyip Erdoğan University, Department of Banking and Finance

DOI:

https://doi.org/10.5195/emaj.2014.52

Abstract

One of the most debated topics in Economics literature is the relation between budget deficit and current account deficit. The data obtained from the presence of this kind of relation is leading for policy makers in terms of determining the quality of the policy to be preferred and the economic policy to be pursued. In this study, the relation between budget deficit and current account deficit in Turkey is analyzed for 2001Q2-2012Q2 period. According to the data obtained, budget deficit has negative and statistically meaningful effect on current account balance. On the other hand, budget deficit has negative effect on current account balance in short terms.

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Published

2014-03-05

Issue

Vol. 3 No. 3 (2014)

Section

Articles

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