The relationship between economic crises and domestic-external borrowing in some developing countries and Turkey

The Great Depression of 1929 and the economic crises after it had a negative impact on the economies of developed and developing countries. Economic crises, which generally occur with the effects of political, economic and technological changes, manifested themselves in the form of decrease in production, increase in unemployment, inflation, deflation or stagflation. Another important macroeconomic variable that changes during the economic crisis is the increase in domestic and foreign borrowing. In this context, the subject of the study is to examine the factors affecting domestic and foreign borrowing in some developing countries and the relationship between economic crises and domestic-external borrowing in Turkey. The aim of the study is to predict future economic crises and/or borrowing crises based on the factors affecting domestic and foreign borrowing in some developing countries and the interaction of economic crises and domestic and foreign borrowing in Turkey. This study will contribute to the literature in terms of addressing the factors affecting domestic and foreign borrowing in some developing countries and the relationship between economic crises and domestic and foreign debt in Turkey. According to the evaluations, the factors affecting domestic and foreign debts in some developing countries; public sector deficits, interest rate, inflation rate and exchange rate, investment-savings deficits, size of the financial sector, economic growth and economic crises. For the economic crises experienced in Turkey after 1990, the amount of domestic and foreign debt increased before the 1994 economic crisis, decreased in 1994 and increased again after the crisis. In the 2001 crisis, the amount of external debt decreased in the pre-crisis period compared to the amount of domestic debt, and increased in 2001 and after. In the 2008 global crisis, it can be said that the amount of domestic debt and external debt increased before the crisis year, after 2008 and after the crisis year.