The effect of the economic growth on the current account: A study on Turkey

The relationship between the current account deficit and growing economics literature is one of the issues discussed frequently. About the relationship between the current account deficit and growth has not yet reached a consensus. Some economists have argued that while some economists are claiming that there is a strong relationship between current account deficit and growth that is a weak relationship or no relationship between the current account deficit and growth. In this study, 1998: 4-2013 : 4 quarterly , using the GDP current account deficit and exchange rate data Granger causality and OLS test was examined . As a result, the current account deficit growth and bidirectional causality has been identified. The increase in GDP the current account deficit has been determined to cause positive change. KEYWORDS: Current Account Deficit , Growth, GDP, Granger Causality Analysis, OLS