Proceedings of the 11th International Academic Conference, Reykjavik

THE EFFECT OF CURRENT ACCOUNT DEFICIT ON ECONOMIC GROWTH: THE CASE OF TURKEY

IBRAHIM EREM SAHIN, MEHMET MUCUK

Abstract:

Current account deficit ise a measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports. Current account deficit has an important role on economic growth for developing countries. The objective of this study is to analyse the relationship between economic growth and current account deficit for Turkey using time series analysis. For this purpose, Gross Domestic Product and Current Account Deficit data of Turkey between the quarterly data including 2002-2013 were used. Empirical findings show that current account deficit affect economic growth negatively for Turkish economy.

Keywords: Current Account Deficit; Economic Growth; Time Series Analysis; Turkish Economy

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