The effect of the triple deficit hypothesis on economic growth: Case of Turkey

In this study, the effect of the triple deficit hypothesis on economic growth in Turkey from 1980 to 2017 was investigated. The aim of the study is to know how the components of the triplicate deficit affect each other, to fight this gap in the economy and to make this gap affect the economic growth of the country. In the last section of the study, using the annual data covering empirical application, the effect of components forming the triplicate deficit in 1980-2017 period on economic growth was tested using Vector Autoregression (VAR) model method. As a result of the analysis, triplet deficits components have an active role in economic growth and are the most obvious variables. According to the analysis results made according to Granger causality test, a one-way causality from imports to public budget expenditures and private savings, public budget expenditures and exports between two-way causality has been determined. At the same time, there is one-way causality from public budget expenditure towards gross domestic product economic growth, and one-way causality from public budget income towards export and public budget expenditure.