THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY

Year 2017, Volume: 13 Issue: 3, 507 - 520, 01.08.2017

Şehnaz Bakır Yiğitbaş

https://doi.org/10.17130/ijmeb.2017331325

Cited By: 3

Abstract

In this study, the relationship between financial depth and current account deficit in Turkey is investigated in the short-run and long-run by using Bounds Test approach developed by Pesaran & Shin 1999 and Pesaran 2001 for the period 1987:01-2014:04. According to the results, there is a long-term relationship between financial depth and the current account deficit, but there is no short-term relationship. In addition, there is a negative relationship between the current account deficit variables and financial depth indicating that the more financial depth increases; there is an improvement in the current account deficit

Keywords

Financial Depth, Current Account Deficit, Turkish Economy

THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY

Abstract

In this study, the relationship between financial depth and current account deficit in Turkey is investigated in the short-run and long-run by using Bounds Test approach developed by Pesaran & Shin 1999 and Pesaran 2001 for the period 1987:01-2014:04. According to the results, there is a long-term relationship between financial depth and the current account deficit, but there is no short-term relationship. In addition, there is a negative relationship between the current account deficit variables and financial depth indicating that the more financial depth increases; there is an improvement in the current account deficit.

Keywords

Finansal Derinlik, Cari Açık, Türkiye Ekonomisi

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