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The Econometric Analysis of the Relation between the Current Accounts Deficit and the Budget Deficit of the Social Security Institution

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  • Özgür Hakan ÇAVUŞ

Abstract

This study examines the relation between the health expenditure and pension payments which are among the most important spending items leading to the budget deficit of the Social Security Institution (SGK) and the current accounts deficit, in other words the current deficit, which is one of the basic accounts of the balance of payments. For this purpose, the current deficit amounts obtained from the data of the Turkey Republic Central Bank between the years of 2002 and 2013 and the data on health expenditure and pension payments announced by SGK and included among the SGK budget deficit items were subject regression and correlation analyses with the SPSS 20.0 program. According to the results of the regression and correlation analysis, high level relation and explanation level were found between health spending and current deficit as well as between pension payments and current deficit. However, no econometric relation was found between current deficit and SGK budget deficit. Within the framework of the econometric analysis in our study, it was found that the current deficit increase had an effect of 72% on health spending and 75% on pension payments.

Suggested Citation

  • Özgür Hakan ÇAVUŞ, 2016. "The Econometric Analysis of the Relation between the Current Accounts Deficit and the Budget Deficit of the Social Security Institution," Sosyoekonomi Journal, Sosyoekonomi Society, issue 24(27).
    • Handle: RePEc:sos:sosjrn:160111
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    References listed on IDEAS

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    1. Sebastian Edwards, 2002. "Does the Current Account Matter?," NBER Chapters, in: Preventing Currency Crises in Emerging Markets, pages 21-76, National Bureau of Economic Research, Inc.
    2. Caroline Freund & Frank Warnock, 2007. "Current Account Deficits in Industrial Countries: The Bigger They Are, The Harder They Fall?," NBER Chapters, in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 133-168, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Current Deficit; Pension Payments; Health Spending; SGK Budget Deficits.;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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