Turkey: An Empirical Assessment of the Determinants of the Current Account Balance

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Analyzing the Impact of Foreign Capital Inflows on the Current Account Balance in Developing Economies: A Panel Data Approach

“…But the exports of developing countries comprise primary and agricultural goods and are more elastic to generate more revenues, so by improving the standard of the goods, developing countries can generate more revenue to excel the current account deficit. Our results are consistent with the findings of Hoekman et al, (2005), Levinson (2009), Kara and Sarıkaya (2014), Knight et al, (2019). Our estimated relationship is significant at a 1% level of significance.…”

“…Technological Achievement Index, and the Innovation Capability Index (UNCTAD 2007). To meet the required technological demand, developing countries rely on imported technology from developed countries (Dahlman et al, 1987) and this imported technology is highly costly which raises the level of current account deficit of these countries (Knight et al, 2019). Our results are consistent with the findings of Hoekman et al, (2005), Levinson (2009), Kara and Sarıkaya (2014), Knight et al, (2019).…”