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Journals / Maliye Dergisi / 2016 / Sayı: 170

The Relationship between Current Account Balance and Financial Account: An Empirical Study for Turkey

Cari Denge ve Finans Hesabı İlişkisi: Türkiye İçin Ampirik Bir Uygulama

Taner TURAN
Mesut KARAKAŞ
Pages
45–58
DOI
—
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AI Summary & Key Takeaways

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

Empirical findings indicate a unilateral causality running from financial account and portfolio account to current account balance.

📌 3 Key Takeaways

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Objective & Hypothesis:The present paper examines the causality between current account balance and financial account and three components of financial account namely direct investments, other investments and portfolio investments over the period of 1998:12014:4 in Turkey which has a continuous current account deficit and an important capital inflow.
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Key Findings & Data:Causality tests were implemented through Toda-Yamamoto and Hatemi-J approaches.
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Conclusion & Impact:Empirical findings indicate a unilateral causality running from financial account and portfolio account to current account balance.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

The present paper examines the causality between current account balance and financial account and three components of financial account namely direct investments, other investments and portfolio investments over the period of 1998:12014:4 in Turkey which has a continuous current account deficit and an important capital inflow. Causality tests were implemented through Toda-Yamamoto and Hatemi-J approaches. Empirical findings indicate a unilateral causality running from financial account and portfolio account to current account balance. Thus, it should be a priority to reconsider policies regarding financial account balance with a particular attention to portfolio investment and also to implement some policy measures to attract more direct investments rather than portfolio investments for the ultimate purpose of reducing high current account deficit.

Özet

Bu çalışmada sürekli cari açık veren ve önemli bir sermaye girişi yaşayan Türkiye için 1998:1-2014:4 dönemi verileri kullanılarak cari denge ile finans hesabı ve finans hesabını oluşturan doğrudan yatırımlar, diğer yatırımlar ve portföy yatırımları arasındaki nedensellik ilişkisi incelenmektedir. Bu amaç doğrultusunda Toda-Yamamoto ve Hatemi-J yaklaşımları kullanılarak nedensellik testleri gerçekleştirilmektedir. Ampirik bulgular genel olarak finans hesabından ve portföy yatırımlarından cari dengeye giden tek yönlü bir nedensellik ilişkisi olduğunu göstermektedir. Yüksek cari açığın düşürülmesi için başta portföy yatırımları olmak üzere finans hesabı dengesiyle ilgili politikaların yeniden gözden geçirilmesi ve özellikle portföy yatırımlarından ziyade yabancı doğrudan yatırımları çekmeye öncelik verilmesi gerektiği çalışmada vurgulanmaktadır.

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Cite This Article

TURAN, T., KARAKAŞ, M. (2016). The Relationship between Current Account Balance and Financial Account: An Empirical Study for Turkey. Maliye Dergisi, Sayı: 170, 45–58. https://ajindex.com/articles/78912

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