The relationship among the current deficit - Short term capital movements and economic growth: Evidence from Turkey

Abstract

In this study, it was analysed if there is a short and long term relationship among the current deficit, short-term capital movements and the economic growth within the periods of 1998Q1-2011Q4 in Turkey. It was used to Autoregressive Distributed Lag model for analyzing the series. As a result of the Autoregressive Distributed Lag model test, it was confirmed the co-integration relationship among the series related to current deficit, economic growth and short term capital flows in short term and long term.