IN TURKEY ECONOMY CURRENT DEFICIT AND REASONS: ARDL ANALYSIS

Abstract

In this study, the relationship between current deficit and domestic savings gap, portfolio benefit transmission, outstanding external debt, foreign direct investment benefit transmission, energy imports for Turkish economy. In this direction, these variables were analyzed annually for the period 1987-2016, using , Augmented Dickey Fuller (ADF) and Phillips- Perron (PP) Unit Root Test, ARDL, CUSUM and Granger Causality Tests. Addition these variables were descriptive statistics and coefficient of correlation scalculated. According to the results of the research, it is found that the these variables are related to the previous period's values. The Granger causality test revealed that there is causality relationship between current deficit and energy import, outstanding external debt and foreign direct investment benefit transmission.