Analysing of the effects of macro economic factors on current deficit

The purpose of this study is to analyze the determinants of the current account deficit, which is the one of the most important problems of developing countries. Also in this study, using as base the annual data which is belonged to variable of Current Account Balance, Gross Domestic Product, Real Exchange Rate and Real Interest Rate, Rate of Capacity Utilization Rate on the dates of 2000-2015, VAR model has been established. In this model Granger causality and Johansen cointegration tests have been applied. As a result of analyzes, it was found out that there is Granger cause between Current Account Balance, Real Rate of Interest and Gross Domestic Product, Real Effective Rate Of Exchange. As a consequence of the Granger causality test, real interest rate as the Granger cause of the Current Balance, Capacity Utilization Rate as the Granger Cause of the Gross Domestic Product and Real Effective Exchange Rate as the Granger Cause of the Gross Domestic Product were found.