67-82

• Özer, Mustafa
• Coşkun, İnci Oya

Persistent rise in current account deficit (CAD) and the way that the country finances its CAD constitutes one of the major sources of external fragility in Turkey. Therefore, sustainability of CAD has become one of the critical issues for at least two decades. In this study, intertemporal budget constraint model was used to examine the sustainability of Turkish CAD after the financial crisis in 2001. Unit root and cointegration techniques were employed in the analysis. The main result of the study indicates that Turkish CAD is sustainable in a weak sense for the postcrisis period.

• Economics and Business
• Computer and information sciences

• Economics
• Statistics

Current account deficit, sustainability, intertemporal budget model, Zivot-Andrews unit root test, cointegration, Turkey

The authors are very thankful to Erkan Özata, Assistant Prof. for his contribution.Περιέχει πίνακες, διαγράμματα και βιβλιογραφία