Current account deficit and economic growth relation example of Turkey

Current account deficit is a problem for developed and devoloping countries, especially the countries which devoloping as Turkey because of there is not a ultimate result has not been taken. In Turkey with changing growth results current account deficit results changing as well. The problem in there, is current account deficit cause changes in growth values or changing growth values cause the change in current account deficit. In this study, to answer this question with the value of 1998Q1-2014Q1 for current account/GDP and percentage change in GDP a granger causaltiy test and VAR analysis were made. The result is there is a one way causality from growth to current account deficit.