Empirical findings on triplet deficits hypothesis: The case of Turkey

Abstract

The aim of this study is to investigate the concept of triplet deficits in Turkey between 1980 and 2010. "Dolado-Lütkepohl Granger Causality Analysis" was performed in order to determine the direction of the relationship among the variables. In addition, the Vector Autoregressive (VAR), Variance Decomposition and Impulse-Response analysis were performed to determine the degree to which variables affected each other. The study finds that triplet deficit hypothesis was valid in Turkey between 1980 and 2010.