The Relationship Between Financial Depth and Current Account Deficit in Turkey

Bakır Yiğitbaş Ş.

International Journal of Management Economics and Business, cilt.13, sa.3, ss.1-10, 2017 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 13 Sayı: 3
  • Basım Tarihi: 2017
  • Dergi Adı: International Journal of Management Economics and Business
  • Derginin Tarandığı İndeksler: TR DİZİN (ULAKBİM), Other Indexes
  • Sayfa Sayıları: ss.1-10
  • Çanakkale Onsekiz Mart Üniversitesi Adresli: Evet

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 f inancial depth increases; there is an improvement in the current account deficit.