Effects of Budget Deficit on Current Account Balance: Analysis of Twin Deficits Hypothesis in Case of Turkey

Bayrak, Metin; Esen, Ömer

doi:10.5455/ey.20001

Cited by 8 publications

(2 citation statements)

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“…Türkiye ekonomisinde İkiz Açık Hipotezi'nin geçerliliği çalışmalarında farklı sonuçlar bulunmuştur. İkiz Açık Hipotezinin geçerli olduğunu belirten çalışmalar bulunmaktadır (Utkulu, 2003;Bayrak ve Esen, 2012, Koçbulut ve Altuntaş, 2016Sevinç, 2016). Ancak literatürde İkiz Açık Hipotezi'ni desteklemeyen çalışmalar da bulunmaktadır (Bolat vd.…”

Section: Yazın İncelemesiunclassified

Triple Deficit Pressure Index and Analysis of the Relationship Between Triple Deficit Pressure Index and Macroeconomic Variables: Turkey Case

Akkaya

2022

Beykoz Akademi Dergisi

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The aim of this study is to create a Triple Deficit Pressure Index for the Turkish economy in the period of 1998 - 2020 and to examine its relationship with selected macroeconomic - financial indicators by ARDL method. The Triple Deficit Pressure Index is valid in the Turkish economy. ARDL Bound test results are statistically significant. Borsa İstanbul 100 Index Value, Banking Sector Credit Volume, Current Account Deficit, Domestic Debt Stock, Export Import Coverage Ratio, Manufacturing Capacity Utilization Rate and USD / TRL buying rate are statistically significant and long-term relationship occurs between significant variables and the Triple Deficit Pressure Index. According to Granger Causality test results, there is one-way causality from Banking Sector Credit Volume and Industrial Production Index to Triple Deficit Pressure Index.

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Section: Yazın İncelemesiunclassified

Triple Deficit Pressure Index and Analysis of the Relationship Between Triple Deficit Pressure Index and Macroeconomic Variables: Turkey Case

Akkaya

2022

Beykoz Akademi Dergisi

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“…The effect of budget deficit or certain economic variables were also investigated recently, Agarwal (2014) for India, Chihi and Normandin (2013) for some developing countries, Bayrak and Esen (2012) and Akçay et al (2001) in case of Turkey, Qayyum and Haider (2012) for low-income countries, Greenidge et al (2011) in the case of Barbados and Osinubi et al (2010) for Nigeria. Qayyum et al (2014) also presented a theoretical model for foreign aid, external debt and governance.…”

Section: Review Of Literaturementioning

confidence: 99%

Budget Deficit and External Debt in Jordan: Causality and Co-Integration Analysis

Shahateet¹,

Al-Habashneh²,

Al-Majali³

2014

IJEF

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This paper examines the relationship between budget deficit and external public debt in Jordan during 1992-2012. After reviewing major fiscal and monetary developments, we test for stationarity and co-integration of budget deficit and external debt. In addition, we test for the existence and direction of causality between debt and deficit. The findings of this paper provide evidence of neutrality hypotheses suggesting that there is no causality running from budget deficit to external debt and there is no causality running the other way round. Co-integration test supports the absence of long-run relationship. Empirical findings also suggest that fiscal decision makers may disregard external debt when setting budget constrains including taxes and non-interest spending. They also imply that budget constraints must rely on more important factors other than external debt when drawing fiscal policies. These factors may include good governance, tax reforms and lowering government spending on certain economic activities that have little significance on total output.

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The structure and sustainability of current account deficit: Turkish evidence from regime switching

Topallı

Doğan

2015

The Journal of International Trade & Economic Development

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Effects of Budget Deficit on Current Account Balance: Analysis of Twin Deficits Hypothesis in Case of Turkey

Cited by 8 publications

References 0 publications

Triple Deficit Pressure Index and Analysis of the Relationship Between Triple Deficit Pressure Index and Macroeconomic Variables: Turkey Case

Triple Deficit Pressure Index and Analysis of the Relationship Between Triple Deficit Pressure Index and Macroeconomic Variables: Turkey Case

Budget Deficit and External Debt in Jordan: Causality and Co-Integration Analysis

The structure and sustainability of current account deficit: Turkish evidence from regime switching

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