Is There Any Time-Varying Relationship between Fiscal and Trade Deficits in Turkey?
Makaleler > Tam Makale · 2016
Yazarlar: Barış GÖK, Abdurrahman Nazif ÇATIK
Prague Economic Papers, SCI Expanded İndekslerine Giren Dergi, Uluslararası, Wos, 2016, cilt 25, ss 607-616
DOI: 10.18267/j.pep.577
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.