The Relationship Between Capital Flows and Current Deficit : Evidence from Turkey

Authors

  •   Yusuf Ekrem Akbas Assistant Professor, Department of Economics, Faculty of Economics and Administrative Sciences, Dr. Adiyaman University, Altinsehir Mah. 3005 Sok. No: 13, 02040, Adiyaman
  •   Mehmet Senturk Assistant Professor, Department of International Trade and Logistics, Faculty of Economics and Administrative Sciences, Dr. Kilis 7 Aralik University, Mehmet Sanli Mah., Dogan Gures Pasa Bul. No:134, 79000. Kilis
  •   Canan Sancar Assistant Professor, Kelkit Aydin Dogan Vocational High School, Department of Accounting and Tax Applications, Dr. Gumushane University, Ataturk Mah. 17 Subat Bul. 29600, Kelkit-Gumushane

DOI:

https://doi.org/10.17010/ijf/2014/v8i11/71693

Keywords:

Current Deficit

, Capital Flows, ARDL Bound Test, Co-Integration, Turkey

E22

, F21, F32

Paper Submission Date

, April 29, 2014, Paper sent back for Revision, July 8, Paper Acceptance Date, August 8, 2014.

Abstract

The present paper analyzed the relationship between current account deficit and capital flows in Turkey over the period from 1990-2011. Augmented Dickey Fuller and Dickey Fuller-Generalized Least Squares unit root tests were used to analyze the stability of current deficit (CA) and capital flows (CF) series. Then, autoregressive distributed lag (ARDL) bound test was used in order to check if there is cointegration between the series according to the results obtained from the ARDL test. To conclude, the study revealed that is a cointegration relationship between current deficit and capital flows in Turkey.

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Published

2014-11-01

How to Cite

Akbas, Y. E., Senturk, M., & Sancar, C. (2014). The Relationship Between Capital Flows and Current Deficit : Evidence from Turkey. Indian Journal of Finance, 8(11), 7–22. https://doi.org/10.17010/ijf/2014/v8i11/71693

Issue

Volume 8, Issue 11, November 2014

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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