The effect of saving deficit and energy deficit on economic growth: The analysis of Turkey

There are important structural problems of Turkey such as saving gap and energy gap which restrict strong and sustainable economic growth and wait for solution. These two factors, which increase foreign dependency of Turkey, affect economic and political power of country. In this context, the relationship between economic growth and these two factors that give way Turkey's economy is important in terms of policies and measures to be implemented. The aim of this thesis is to investigate the causal relationship between economic growth and saving gap, energy gap in Turkey. In this study, for this purpose, there were used annual data covering the period of 1975-2017 for Turkey. Causal relationship between economic growth and saving gap, energy gap were tested using Vektor Error Correction Model (VECM) and Granger Causality Analysis. Empirical findings of the study should be examined in two groups. Firstly, it is observed that there is a bidirectional causality between energy gap and economic growth both in the short and long term. Secondly, it is also observed that there is a one-way causality from saving gap toward economic growth in the short term but bidirectional causality between the saving gap and economic growth in the long term.