Year 2017, Volume 7, Issue 2, Pages 105 - 126 2017-12-30

The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries
The Relationship between Current Account Balance and Types of Credits: An Application on Selected OECD Countries

Nihat IŞIK [1] , Suat Serhat YILMAZ [2] , Efe Can KILINÇ [3]

215 420

While in literature that the current account deficit to GDP ratio exceeds the level 4-5 is considered as a leading indicator of crisis in economies, solution proposals to this issue is of vital importance in terms of countries. By the reason of increasing purchasing power, the rise in credits has a serious impact on the increase of the current account deficit without ignoring the importance of other factors. Within this scope, in the study, the relationship between current account balance and the credits to firms, households and government has been estimated by using PMGE and MGE in 26 selected OECD countries for the years between 2005Q1 and 2015Q2. The findings obtained showed that while the credits given to households and firms have a negative impact on the current account balance in short-run, the credits to firms and government have positive effect on it in long-run.

While in literature that the current account deficit to GDP ratio exceeds the level 4-5 is considered as a leading indicator of crisis in economies, solution proposals to this issue is of vital importance in terms of countries. By the reason of increasing purchasing power, the rise in credits has a serious impact on the increase of the current account deficit without ignoring the importance of other factors. Within this scope, in the study, the relationship between current account balance and the credits to firms, households and government has been estimated by using PMGE and MGE in 26 selected OECD countries for the years between 2005Q1 and 2015Q2. The findings obtained showed that while the credits given to households and firms have a negative impact on the current account balance in short-run, the credits to firms and government have positive effect on it in long-run.

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Subjects Economics
Journal Section Karatekin İİBF
Authors

Author: Nihat IŞIK
Country: Turkey


Author: Suat Serhat YILMAZ
Institution: KIRIKKALE ÜNİVERSİTESİ
Country: Turkey


Author: Efe Can KILINÇ
Country: Turkey


Bibtex @research article { ckuiibfd345173, journal = {Çankırı Karatekin Üniversitesi İİBF Dergisi}, issn = {1308-5549}, eissn = {2147-4206}, address = {Cankiri Karatekin University}, year = {2017}, volume = {7}, pages = {105 - 126}, doi = {10.18074/ckuiibfd.345173}, title = {The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries}, key = {cite}, author = {IŞIK, Nihat and YILMAZ, Suat Serhat and KILINÇ, Efe Can} }
APA IŞIK, N , YILMAZ, S , KILINÇ, E . (2017). The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries. Çankırı Karatekin Üniversitesi İİBF Dergisi, 7 (2), 105-126. Retrieved from http://dergipark.org.tr/ckuiibfd/issue/31317/345173
MLA IŞIK, N , YILMAZ, S , KILINÇ, E . "The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries". Çankırı Karatekin Üniversitesi İİBF Dergisi 7 (2017): 105-126 <http://dergipark.org.tr/ckuiibfd/issue/31317/345173>
Chicago IŞIK, N , YILMAZ, S , KILINÇ, E . "The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries". Çankırı Karatekin Üniversitesi İİBF Dergisi 7 (2017): 105-126
RIS TY - JOUR T1 - The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries AU - Nihat IŞIK , Suat Serhat YILMAZ , Efe Can KILINÇ Y1 - 2017 PY - 2017 N1 - DO - T2 - Çankırı Karatekin Üniversitesi İİBF Dergisi JF - Journal JO - JOR SP - 105 EP - 126 VL - 7 IS - 2 SN - 1308-5549-2147-4206 M3 - UR - Y2 - 2017 ER -
EndNote %0 Journal of the Faculty of Economics & Administrative Sciences The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries %A Nihat IŞIK , Suat Serhat YILMAZ , Efe Can KILINÇ %T The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries %D 2017 %J Çankırı Karatekin Üniversitesi İİBF Dergisi %P 1308-5549-2147-4206 %V 7 %N 2 %R %U
ISNAD IŞIK, Nihat , YILMAZ, Suat Serhat , KILINÇ, Efe Can . "The Relationship Between Current Account Balance and Types of Credits: An Application on Selected OECD Countries". Çankırı Karatekin Üniversitesi İİBF Dergisi 7 / 2 (December 2017): 105-126.