IS THERE ANY TIME-VARYING RELATIONSHIP BETWEEN FISCAL AND TRADE DEFICITS IN TURKEY?


GÖK B. , ÇATIK A. N.

PRAGUE ECONOMIC PAPERS, cilt.25, ss.607-616, 2016

  • Cilt numarası: 25 Konu: 5
  • Basım Tarihi: 2016
  • Doi Numarası: 10.18267/j.pep.577
  • Dergi Adı: PRAGUE ECONOMIC PAPERS
  • Sayfa Sayısı: ss.607-616

Özet

In this article we analyse the evolution of the relationship between budget and trade deficits in Turkey covering the period 1985:1 to 2013:4. The structural break tests suggest the existence of a regime shift after the severe 2001 crisis. Time-varying responses obtained from the TVP-VAR model up to 2003 support the Keynesian view by providing evidence in favour of twin deficits, whereas the remaining responses suggest the remarkable divergence between fiscal and trade deficits.