TY  - JOUR
T1  - Current Account Deficit – Budget Deficit – Debt Sustainability Triangle in Turkey: A Data Based Causality Analysis
TT  - Current Account Deficit – Budget Deficit – Debt Sustainability Triangle in Turkey: A Data Based Causality Analysis
AU  - Acar, Yasin
AU  - Benli, Muhammed
PY  - 2020
DA  - March
Y2  - 2020
JF  - BİLTÜRK Ekonomi ve İlişkili Çalışmalar Dergisi
JO  - BILTURK
PB  - Fatih DEYNELİ
WT  - DergiPark
SN  - 2667-5927
SP  - 398
EP  - 409
VL  - 2
IS  - 2
LA  - tr
AB  - In this study, we examine thecausal patterns among current account deficit, budget deficit, government debtsustainability, and inflation in Turkey for the period 1975 – 2017. The strongintegration of emerging economies such as Turkey to the global economy dependson determining the true causal relationship between macroeconomic dynamics thatare considered in this study and the implementation of the related policiesaccordingly. Therefore, in order to create inductive causal patterns among theselected variables, we employ Directed Acyclic Graphs (DAGs) widely used incausal modeling. The resulting DAG patterns suggest that the current accountdeficit has a direct effect on the budget deficit which is a direct determinant ofgovernment debt sustainability. The findings also indicate that inflation is anindirect determinant of government debt sustainability through its directeffect on-budget deficit.
KW  - directed acyclic graphs
KW  - public debt
KW  - budget deficit
KW  - current account deficit
N2  - In this study, we examine thecausal patterns among current account deficit, budget deficit, government debtsustainability, and inflation in Turkey for the period 1975 – 2017. The strongintegration of emerging economies such as Turkey to the global economy dependson determining the true causal relationship between macroeconomic dynamics thatare considered in this study and the implementation of the related policiesaccordingly. Therefore, in order to create inductive causal patterns among theselected variables, we employ Directed Acyclic Graphs (DAGs) widely used incausal modeling. The resulting DAG patterns suggest that the current accountdeficit has a direct effect on the budget deficit which is a direct determinant ofgovernment debt sustainability. The findings also indicate that inflation is anindirect determinant of government debt sustainability through its directeffect on-budget deficit.
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UR  - https://dergipark.org.tr/tr/pub/bilturk/issue//684626
L1  - https://dergipark.org.tr/tr/download/article-file/1004955
ER  -