DOĞAN, Emrah Anadolu Üniversitesi - Sosyal Bilimler Enstitüsü, Turkey , BAYRAÇ, H. Naci Eskişehir Osmangazi Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey

A Micro-Based Approach on the Problem of the Current Account Deficit in Turkey

16109

In recent years, high current account deficit problem has become one of the most important issues in developing countries. The aim of this study was to investigate the structural causes of this phenomenon and analyze the current account deficit causes with economic impacts in Turkey experience. This study also analyze Turkey’s current account optimal sustainability and consumption behaviours between 1998 and 2013. The evolution of the current account balance is compared against a benchmark derived from an optimization model of the intertemporal consumption smoothing. Empirical results indicate that Turkey which consumes more than its permanent cash flow has foregone future consumption in favor of present consumption. In addition, between actual and optimal current account balance series confirm that Turkey’s current account deficit was unsustainable for that period.

97

Current Account Deficit , Optimal Sustainability , Structural Causes

Journal Of Social Sciences, Eskişehir Osmangazi University

124