Does Credit Growth 'Cause'Current Account Deficits? Evidence from Turkey

Abstract

The extent of current account deficits in the Turkish economy has reached alarming levels in the past few years. Beside other arguments, one line of debate has recently been put forward by the Central Bank of the Republic of Turkey; it is stated that credit expansion in the economy has been one of the leading reasons behind the large current account deficits. When the annual credit growth reached the level over 30 per cent in 2010, concerns regarding financial and macroeconomic stability were pronounced, and some policy measures were taken by the central bank in order to bring credit growth down to more 'sustainable' levels, as stated. This study aims to empirically analyse the relationship between current account balances and domestic credit dynamics in the case of Turkey. To this end, the paper employs the ARDL bounds testing methodology and investigates causality implications between domestic credit and external balance variables. The empirical findings of the study suggest Granger causality running from domestic credit growth to external balances.

How do GenZ speakers use and process emoji in chatbot conversations: An eye-tracking study

“…Beattie et al (2020) show that participants rated emoji-using chatbots as more socially attractive, competent, and credible compared to word-only chatbots. Dogan & Collins (2019) focused specifically on emoji use for communication with GenZ users and found emojis help GenZ express their feelings better. This suggests emojis may be particularly beneficial for chatbots targeting younger demographics.…”

Global financial environment or monetary transmission mechanism? The (special) dynamics of Turkey's external deficit after 2002

“…Özlale and Pekkurnaz (2010) report the significant impact of oil prices on Turkey's CA deficit, especially in the short run. More recently, Soydan (2016) suggests that, in Turkey, rapid credit growth has a negative impact on current account and trade deficits, and hence, attempts to control credit expansion may help to curb external deficits.…”

Bireysel Emeklilik Fonları ve Cari Açık Arasındaki İlişki: Türkiye Örneği

“…Bu durum, özellikle son dönemde birçok iktisatçının daha fazla ilgisini çekmeye başlamıştır. (Abbasoğlu (2017), Beşel (2017), Yiğitbaş (2017), Turan (2016), Soydan (2016), Başarır ve Erçakar (2016), Yurdakul ve Cevher (2015), Yurdakul ve Uçar (2015), Dinçer ve Yaşar (2015), Özdamar (2015), Kara ve Sarıkaya (2014), Murat vd (2014), İnsel ve Kayıkçı (2012) gibi). Yapılan çalışmalarda, cari açığın sürdürülebilirliği, belirleyicileri ve finansman yöntemleri incelenmesine rağmen, finansman araçlarından biri olarak düşünülen ve kalkınma planlarında da sıklıkla yer verilen bireysel emeklilik fonlarının, cari açık üzerindeki etkisine dair ampirik bir çalışmaya rastlanmamıştır.…”