SavedAdd your journal

Journals / Uluslararası Yönetim İktisat ve İşletme Dergisi / 2017 / Cilt: 13 - Sayı: 3

THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY

Şehnaz Bakır YİĞİTBAŞ
Pages
507–520
Publication Date
2017-08-01
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

According to the results, there is a long-term relationship between financial depth and the current account deficit, but there is no short-term relationship.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In this study, the relationship between financial depth and current account deficit in Turkey is investigated in the short-run and long-run by using Bounds Test approach developed by Pesaran & Shin 1999 and Pesaran 2001 for the period 1987:01-2014:04.
📊
Key Findings & Data:According to the results, there is a long-term relationship between financial depth and the current account deficit, but there is no short-term relationship.
💡
Conclusion & Impact:In addition, there is a negative relationship between the current account deficit variables and financial depth indicating that the more financial depth increases; there is an improvement in the current account deficit
🔬Design:Research Article
📍Scope:2001 Verileri
⚙️Variables:Finansal Derinlik · Cari Açık · Türkiye Ekonomisi

Abstract

In this study, the relationship between financial depth and current account deficit in Turkey is investigated in the short-run and long-run by using Bounds Test approach developed by Pesaran & Shin 1999 and Pesaran 2001 for the period 1987:01-2014:04. According to the results, there is a long-term relationship between financial depth and the current account deficit, but there is no short-term relationship. In addition, there is a negative relationship between the current account deficit variables and financial depth indicating that the more financial depth increases; there is an improvement in the current account deficit

Özet

In this study, the relationship between financial depth and current account deficit in Turkey is investigated in the short-run and long-run by using Bounds Test approach developed by Pesaran & Shin 1999 and Pesaran 2001 for the period 1987:01-2014:04. According to the results, there is a long-term relationship between financial depth and the current account deficit, but there is no short-term relationship. In addition, there is a negative relationship between the current account deficit variables and financial depth indicating that the more financial depth increases; there is an improvement in the current account deficit.

🔖

Cite This Article

YİĞİTBAŞ, Ş. B. (2017). THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY. Uluslararası Yönetim İktisat ve İşletme Dergisi, Cilt: 13 - Sayı: 3, 507–520. https://ajindex.com/articles/169728

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (7)

  1. Blanchard, O., & Giavazzi, F. (2002). Current account deficits in the euro area: The end of the Feldstein-Horioka puzzle?. Brookings Papers on Economic Activity, 33(2), 147-210.
  2. Brissmis, S. N., Handroyiannis, G., Papazoğlu, C., Tsaveas, N. T., & Vasardani, M. (2010). Current account determinants and external sustainability in periods of structural change. European Central Bank, Working Paper Series, No. 1243. Calderon, C., Chong, A., & Loayza, N. (2000). Determinants of current account deficit in developing countries. The World Bank, Policy Research Working Paper Series, No: 2398. CBRT. (2010). Financial stability report. Issue: 11, December. Clarida, R. (2005).
  3. Japan, China, and the U. S. current account deficit. CATO Journal, 25(1), 111-114.
  4. Clark, L. (2012). The external current account in macroeconomic adjustment process in Turkey. Princeton University The Woodrow Wilson School’s Gradute Policy Workshop. Chinn, M. D., & Prasad, E. S. (2000). Medium-Term determinants of current accounts in industrial and developing countries: An empirical exploration. NBER Working Paper, No. 7581. Chinn, M. D. & Ito, H. (2005). Current account balances, financial development and institutions: assaying the world “saving glut”. NBER Working Paper, No: 11761. Chinn, M. D., Eichengreen B., & Ito, H. (2011). A forensic analysis of global imbalances. NBER Working Paper Series, No. 17513. Edward, S. (1995). Why are saving rates so different across countries?: An international comparative analysis. NBER Working Paper Series, No. 5097. Ekinci, M. F., Erdem, F. P., & Kılınç, Z. (2014). Credit growth, current account and financial depth. Central Bank of the Republic of Turkey, Working Paper No: 14/21. Feldstein, M., & Horioka, Charles. (1980). Domestic savings and international capital flows. The Economic Journal, 90(358), 314-329.
  5. Hermann, S. & Winkler, A. (2008). Real convergence, financial markets, and the current account emerging Europe versus emerging Asia. European Central Bank, Occasional Paper Series, No. 88/June. IMF. (2014a). Are global imbalances at a turning point. World Economic Outlook, October, 115-154. IMF. (2014b). Turkey-Country Report. No. 14/330. Kamas, L., & Joyce, J. (1993). Money, income and prices under exchange rates: Evidence from causality tests and VARs. Journal of Macroeconomics, 15(4), 747-768.
  6. King, R. G., & Levine, R. (1993).
  7. Finance and growth, Schumpeter might be right. Country Economics Department The World Bank, February 1993, WPS. 1083. Lynch,