Analysis of current account defi̇ci̇t's determi̇nants i̇n Turkey by coi̇ntegration analysi̇s method: 1992-2012

With fastening of liberation process in world economy, current account balance for developing countries has gained much importance. Turkish economy has had structural a change since 1980 with the intention of adapting dynamics of economic globalization and world economy. In this period, protective and imported substitution structure left its place to a structure depending on free market and export incentives, and in which foreign trade, exchange, interest, capital movements were liberalised. With globalization, trade, capital movements and technologic flow has gained an international characteristic and Turkish economy experienced a rapid foreign expansion process since 1980, and integration tendency in international markets gradually has gained speed. On the one hand, this integration process helped the increase of foreign trade volume; on the other hand, it caused the reflection of risks in the world economy onto Turkey. Since 1980, liberalisation policies applied in finance and foreign policy increased the entrance of capital inflow in the short run, thus, it has caused the rise of value of home currency and paved the way for current account deficit through rising import. Current account deficit which has become chronic disease of Turkey has determiners such as deficiency of savings, foreign trade deficits, decrease of reel exchange, budget deficits, and growth. These economic indicators are always in interaction and dependent on each other. In order to solve current account deficit problem, balances in economy need to be made. Aim of this paper is to determine versions causing current account deficit and provide solution offers, and by making balance with these versions in economy