THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY

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

Anahtar Kelimeler:

Finansal Derinlik, Cari Açık, Türkiye Ekonomisi

THE RELATIONSHIP BETWEEN FINANCIAL DEPTH AND CURRENT ACCOUNT DEFICIT IN TURKEY

Keywords:

Financial Depth, Current Account Deficit, Turkish Economy,

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