Structure and Sustainability of Current Account Deficit in Turkish Economy

Murat, Sedat; Hobikoğlu, Elif Haykır; Dalyancı, Levent

doi:10.1016/j.sbspro.2014.09.110

Cited by 19 publications

(10 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Investigations of the current account balance using data from five ASEAN countries, namely Indonesia, Malaysia, Philippines, Singapore and Thailand during the period 1981-2008 were analyzed using the regression panel approach, that economic growth had a positive and significant, while investment foreign direct and financial development has a significant negative effect [18]. Analysis of the current account deficit in Turkey using the regression method during the period 2003-2013, that economic growth and the real exchange rate have positive effect, while import has negative effect [19]. Analysis of the current account balance between Germany and Euro zone peripheral countries during the period 1999-2011 using the regression method, that financial development has a negative effect, real exchange rate has a positive effect and exports have a positive but not significant effect [20].…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants and Causality of Current Account Balance and Foreign Direct Investment: Lower Middle Income Countries in ASEAN

Aimon

Kurniadi

Sentosa

2020

KSS

View full text Add to dashboard Cite

This study investigates the determinants and causality between current account balance and foreign direct investment in Association of Southeast Asian Nations (ASEAN) in lower middle income countries. This study uses time series from 2000-2017 and cross section of 6 countries, namely Indonesia, Philippines, Vietnam, Lao, Myanmar and Cambodia, which were analyzed using simultaneous equation model approach. There are three important findings in this study. First, current account balance is positively affected by financial development, government expenditure, real GDP and real exchange rate, while negatively affected by foreign direct investment. Second, foreign direct investment is positively affected by real GDP, real exchange rate, economic openness and current account balance, while negatively affected by inflation. Third, there is a causal relationship between current account balance and foreign direct investment, which the two variables significantly influence each other. Therefore, it is highly recommended for lower middle income countries in ASEAN to intervene in macroeconomic policy variables, so that the deficit conditions for current account balance and foreign direct investment can be reduced in the lower middle income countries in ASEAN. Keywords: current account balance, foreign direct investment, determinants, causality, lower middle income countries, ASEAN.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Determinants and Causality of Current Account Balance and Foreign Direct Investment: Lower Middle Income Countries in ASEAN

Aimon

Kurniadi

Sentosa

2020

KSS

View full text Add to dashboard Cite

show abstract

“…The author notes that this has not been considered explicitly in earlier works. Similarly, Baharumshah, Lau and Fountas (2003) considered a similar model with a budget constraint of an individual who is able to borrow and lend freely in the international market, and following Hakkio and Rush (1991) and Husted (1992) present an empirical specification with export as a function of income (see Murat et al, 2014 for Turkey; Baharumshah, Lau & Fountas, 2005, for eight East Asian countries).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Murat et al (2014) found that the current account has weak sustainability in Turkey. Jawaid and Raza (2012) examine the determinants of the current account deficit in Pakistan by using annual time-series data for the period 1976–2010.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There is a plethora of country-specific and group-of-countries studies on the dynamics of the current account. For the latter category, see among others Murat, Hobikoglu and Dalyanci (2014) and Jawaid and Raza (2012) for Turkey; Matsubayashi (2005) for the United States; and Karunaratne (2010) for Australia, while in the case of the former, Huntington (2015), Edwards (2006), Milesi-Ferretti and Razin (1998), Kim, Min, Hwang and McDonald (2009) and Gnimassoun and Coulibaly (2014) are worthy of note. Observably, assessment of current account sustainability within the context of oil price variations has received little attention.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

An Empirical Analysis of Nigeria’s Current Account Sustainability

Shuaibu

Oyinlola

2017

Margin: The Journal of Applied Economic Research

View full text Add to dashboard Cite

This study reexamines the sustainability of the current account in Nigeria over four decades using time-series analysis on annual data from 1981 to 2013. We focus on two analytical distinctions to the inter-temporal budget constraint (IBC) hypothesis in relation to previous studies. First, we extend the standard bivariate approach to a multivariate framework that accounts for the roles of oil price variations and financial deepening, which have important implications for resource allocation. Second is the use of the Toda–Yamamoto modified Wald (MWALD)-based causality test that is also carried out to arbitrage between the results with and without a structural break. It employs both the conventional unit root test (augmented Dickey–Fuller [ADF] and Phillips–Perron [PP]) and the unit root test with a structural break (Perron, 2006; Zivot & Andrews, 1992). It also carries out the conventional residual-based cointegration test (Engle & Granger, 1987) and the residual-based cointegration test with a structural break (Gregory & Hansen, 1995). Findings suggest that there is current account sustainability in Nigeria and structural changes were not very potent during the period under consideration. This implies that the Nigerian economy complied with the IBC hypothesis, suggesting that exports could actually finance imports. JEL Classification: F30, F32

show abstract

“…Among the studies investigating the economic growth-current account balance in Turkey, Ref. [33] pins down the factors affecting current account balance as (i) domestic energy gap and import dependency in energy, (ii) competitiveness gap in high-tech products and intermediate goods, (iii) saving gap, and (iv) higher risk premium with higher interest rates and external financing problem (p. 978). Ref.…”

Section: Economic Growth-current Account Balance Nexusmentioning

confidence: 99%

On the sustainability of the economic growth path of Turkey: 1995–2009

Aşıcı

2015

Renewable and Sustainable Energy Reviews

View full text Add to dashboard Cite

Structure and Sustainability of Current Account Deficit in Turkish Economy

Cited by 19 publications

References 8 publications

Determinants and Causality of Current Account Balance and Foreign Direct Investment: Lower Middle Income Countries in ASEAN

Determinants and Causality of Current Account Balance and Foreign Direct Investment: Lower Middle Income Countries in ASEAN

An Empirical Analysis of Nigeria’s Current Account Sustainability

On the sustainability of the economic growth path of Turkey: 1995–2009

Contact Info

Product

Resources

About