Original Contribution IS THE CURRENT ACCOUNT DEFICIT "TOO LARGE" SOME FURTHER EVIDENCE (original) (raw)

If the total domestic expenditures are higher than the domestic production in an economy, this deficit will be covered from the outside and the current account will have a deficit accordingly. This study analyzes with formal tests whether or not Turkey's current account deficit is too large, which has always been a controversial issue since the 1980 structural change and transformation program. According to the conducted analysis, it is observed that the current account deficit has continually increased especially after 2001 economic crisis although current account deficit is not too large. As a consequence, a structural change is required in the foreign trade policy of Turkey in order for Turkey's economy not to come across crises again.

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