TURKEY ANALYSIS IN FRAMES ON CAUSES AND FINANCING QUALITY OF CURRENT ACCOUNT DEFICITS

Abstract

One of the most important macroeconomic problem has been undoubtedly explains the current account deficits (CADs) in economies gradually increased volume of trading and the diversity of international economic transactions in 21th century. Turkey is also a country struggling with the CADs as about two thirds of the world economy. Another important concept as CADs continuity and a share of GDP and their causes is the knowledge of the deficit financing what it is highly reliable and robust. Because CADs is a flow variable and they will be financed in a way to be for sustainability. In this study, CADS which are continuing for fourteen years in Turkey has been investigated analytically the causes of CADs were examined in detail, their international status, types and quality of financing. The interpretation of a graphs obtained by utilizing different time series are made detailed analysis. According to all evaluations, the quality of financing of the CADs declined in recent years and CADs have increased the economic vulnerability in Turkey.