THE CURRENT ACCOUNT DEFICIT PROBLEM IN TURKEY AND A MODEL EXAMPLE FOR SOLUTION

Abstract

The current account deficit has become one of the major problems for developing countries. The problem of current account deficit is important in terms of countries' growth and development policies. It is almost imperative that the countries that are dependent on the economy have the necessary planning to keep the current deficit under control and that it is possible to sustain the deficit more openly than trying to close the current deficit. The aim of the study is to find the causes of the current account deficit in Turkey and to make econometric analysis between 2000-2016 years on these reasons. The results obtained from the established model show whether Turkey's current account deficit is unsustainable. Hodrick-Prescott filter,Baxter-King filters, Dickey-Fuller test, Johansen Cointegration Test were used and interpreted according to these results.