Finansial liberalization and current account deficit: Turkish economy

Since the proclamation of rhe republic of Turkey's economy to exhibit an open economy applied to different applications. Following configurations are important in this regard since 1980. In parallel with the liberalization of foreign capital in the short-term hot money problem occurring in the country's economy has become an important issue. The study discussed the relationship between short-term foreign capital, the current account deficit. The empirical study unit root test. Johansen Juselius cointegration test cointegrated variables were examined and discussed Granger casuality. Were made for variables variance decomposition. Keywords: Financial liberalization, current account deficit, Turkish economy