THE IMPACT OF CAPITAL FLOWS ON CURRENT ACCOUNT DEFICIT FOR TURKEY

Nebile Korucu () and Sinan Alã‡in ()
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Sinan Alã‡in: Ä°stanbul Kültür University

JOURNAL OF LIFE ECONOMICS, 2019, vol. 6, issue 1, 21-34

Abstract: The impact of capital flows on macroeconomic variables is widely studied in applied literature. In this context, this paper aims to analyze the impact of short-term capital flows and foreign direct investment on current account deficit for Turkey by using quarterly data for the time period 1998-2015. We find out a positive and significant relationship between capital flows and current account deficit and negative insignificant relationship between capital flows and foreign direct investment. We use vector autoregression (VAR) model and impulse responses to analyze dynamics between variables.

Keywords: Capital flows; Foreign direct investment; Current account deficit; Turkey. (search for similar items in EconPapers)
JEL-codes: F32 H62 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:jle:journl:v:6:y:2019:i:1:p:21-34

DOI: 10.15637/jlecon.6.003

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