The effects of international trade in services on current account balance and economic growth: The case of Turkey

Selim Inancli () and Mustafa Torusdag ()
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Selim Inancli: Sakarya University/TURKEY
Mustafa Torusdag: Van Yuzuncu Yil University/TURKEY

Journal of Original Studies, 2022, vol. 3, issue 1, 31-42

Abstract: In the last 30 years, with the rapid developments in information, production and communication technologies, the share of goods and services in world trade has been constantly increasing. Important developments have been achieved in international service areas such as tourism, construction and contracting services and transportation in turkey. Turkey's international services trade revenues positively affect the current account balance and economic growth. In this study, the relationship between the current account balance and economic growth of international service trade in turkey was analyzed using annual data covering the period 1990-2020. For this, ADF (1970) and DF-GLS unit root tests, Bayer-Hanck cointegration test and Fourier Toda-Yamamoto causality tests were applied. According to the causality analysis findings, it was concluded that there is a one-way causality relationship from growth to services trade and a two-way causality relationship between current account deficit and services trade.

Keywords: Current Account Deficit; Economic Growth; Trade in Services; Causality Analysis; Turkey (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:jle:joujos:jos3103

DOI: 10.47243/jos.3.1.03

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