THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY

Authors : Şehnaz Bakır Yiğitbaş

Pages : 507-520

Doi:10.17130/ijmeb.2017331325

View : 13 | Download : 5

Publication Date : 2017-08-01

Article Type : Other

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.
Keywords : Finansal Derinlik, Cari Açık, Türkiye Ekonomisi