İki̇z Açiklar Hi̇potezi̇: Türki̇ye Uygulamasi 1998-2013

Abstract

In this study, the relationship between budget deficit and current account balance which are a big matter of debate in economy since 1980s'tried to be dealed with regards to Keynesyon and Richardian approaches. For Turkish economy, the correlation between budget deficit and current account balance between 1998Q1-2013Q2 years was tested by appliying Johansen cointegration test, Error Correction Model(ECM) and Granger causality test. As a result of this paper, it was found that the twin deficit hypothesis, which puts forward that budgetary deficit affects current account balance, is not valid.