This Study examines the interaction of current account (CA) deficits with other macroeconomic and demographic variables such as per capita GDP, inflation rate (INF), government consumption (Govc), electric consumption (epw), fertility rate (fert), domestic credit to private sector (Dcr), industry value added (iva), life expectancy for Turkey (lifexp), and population age 65 or above (pop) using specification methods on Least Squares Methods (OLS). The dependent variable is per capita GDP since it represents well-being of a country. Recent debates in the Turkish Congress and in the media are full of acrimony about the accretion of the CA deficits because they believe that huge current account deficit is a sign of an economic crisis in the near future. Thus, this study’s priority is to test whether the CA deficit may deteriorate well-being of Turkey and which in turn cause economic crises or not.
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Find related papers by JEL classification: E0 - Macroeconomics and Monetary Economics - - General E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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