An econometric analysis on sustainability of deficiency in Turkey from the of energy economy

In the context of ensuring current balance, especially developing countries face several different issues such as import dependance, international debt loan, inefficiency of savings, money and finance politics and exchange rates. Deficiency in countries' current balance has the characteristics of a barrier against growth and development. Within this context, import dependancy problem outstands as one of the most important causes of deficiency in current balance of Turkey with more than a 70% share. Especially the usage of fossil fuels for energy production in Turkey increases the import dependancy. At this point creating a route based on electricity production from renewable energy sources and developing more extensive policies to materialise the turn for renewable energy sources is of vital importance for both current and future generations. This is because while Turkey is rich in terms of renewable energy sources, energy dependancy increases due to inefficient usage of them. The goal of this thesis is to show to developing countries, particularly Turkey, the energy potential, conceivably encourage with the need for the usage of sustainable energy sources and emphasise the necessity for the development of proper policies. In this study, energy imports, real effective exchange rate and growth data, which are the main variables in terms of sustainability of the current account deficit in Turkey, include Augmented Dickey Fuller (ADF) mapping covering the period 1998Q1-2018Q4 analysis has been done. According to the results of the analysis, the relationship between variables was found to be significant at a low level; the result that the increase in energy imports in the long term will reduce the current account deficit does not meet the theoretical expectation. Subsequently, the study was supported by The Toda-Yamamoto Causality analysis and it was concluded that the current account deficit was the cause of both economic growth and energy imports.