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The relationship between budget deficit and current account deficit: a systematic review on Türkiye

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  • Ayşe Atılgan Yaşa
  • Muhammed Fatih Cüre

Abstract

Various hypotheses have been developed to explain the relationship between budget deficits and current account deficits. Among these, the twin deficit hypothesis is the most extensively studied in the literature. This study conducts a systematic review of the empirical literature on the relationship between budget deficits and current account deficits in Türkiye. Drawing on four major databases - Web of Science, Scopus, EBSCOhost, and Dergipark - 546 studies were initially identified, from which 73 met the inclusion criteria. The preferred reporting items for systematic reviews and meta-analyses (PRISMA) framework guided the study selection, screening, and evaluation processes. The review aims to determine whether a consensus exists in the literature and to analyse the distribution and validity of the supported hypotheses across different historical periods. The findings indicate a broad range of perspectives and no clear consensus regarding the applicability of any single hypothesis to the Turkish case.

Suggested Citation

  • Ayşe Atılgan Yaşa & Muhammed Fatih Cüre, 2026. "The relationship between budget deficit and current account deficit: a systematic review on Türkiye," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 34(4), pages 479-498.
    • Handle: RePEc:ids:gbusec:v:34:y:2026:i:4:p:479-498
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