Effect of macroeconomic variables on growth: Turkey example

As a result of globalization process that world economic system in, notions of economic growth and state of debtor are the primary subjects for the countries which make graoun in modern economic system. Both developed and developing countries can actualize going into debt between each other in this system. Accordingly, relationship of foreign indebtment and economic growth of Turkey has been a subject to researches intensively. In this sense, datas that became subject of the study which is done come into existence from datas of gdp and foreign debt that are presented by Türkiye Cumhuriyet Merkez Bankası Elektronik Veri Dağıtım Sistemi and involve period of 1998Q1 and 2021Q4. The ultimate purpuse of this study are to evaluate situation of external borrowing of Turkey with looking out for differentiation if public and private sector as both sort and long term period, to research if there is a relationship between invesment and expenditure that are under title of both economic growth and upgrowth or not and if there is, to clarify direction and magnitude of the effects. With the purpose of reaching the targeted goal in this study, conceptual framework of economic growth and external borrowing and theoretical approaches have been evaluated in the first and second part, and in the thirt part firstly, analyze of causality relationship and cointegration of varriables that were tested in terms of stability were done. Finally, relationship between foreign debts and gdp has been expounded by cointegration coefficient of the variables that long term relationships are revealed and casuality was determinated. Key Words: Economic Growth, Foreign Borrowing, Cointegration Test, Causality Analysis