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Yazarlar: Ersin YAVUZ, Nurgül ZHALELKANOVA

Konular:-

Anahtar Kelimeler:Twin Deficit,Ricardian Approach,JohansCo-integration

Özet: In the literature, twin deficit is defined as the budget deficit causes the current deficit. There are generally two views on the twin deficit problem. While the Keynesian view suggests that budget deficits lead to a current account deficit, the Ricardian approach argues that there is no relationship between the budget deficit and the current account deficit. The study aims to empirically analyze the twin deficit problems in the framework of these two views in Turkey. The data cover the years 1980-2016. Johansen Co-integration test, VAR Method and Granger Causality test are applied as empirical method. The findings show that the two variables are not co-integrated, the effect on each other is negative, and there is no causality relationship. All findings indicate that the Ricardian approach is valid in the period examined in Turkey

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