Structure and Sustainability of Current Account Deficit in Turkish Economy

Abstract

Turkish economy suffers from a chronic current account deficit because of the saving gap, foreign dependency in energy and intermediate goods and structural economic problems of the economy. It is vital to have sustainable current account balance for Turkish economy in order to keep sustainable economic growth in the economy. Main aim of the study is to analyze the strategies for sustainable current account deficit in Turkish economy by considering the main sources of the current account deficit in the economy and the current account sustainability by considering an econometric model. The result of the model is that current account has a weak form sustainability in Turkish economy. (C) 2014 The Authors. Published by Elsevier Ltd.