KILAVUZ, Emine Erciyes Üniversitesi - İİBF İktisat Bölümü, Turkey , DUMRUL, Yasemin Uşak Üniversitesi - İİBF İktisat Bölümü, Turkey

İKİZ AÇIKLAR HİPOTEZİNİN GEÇERLİLİĞİ: TEORİ VE UYGULAMA

36693

In this study, it was aimed to determine the relationship between the budget deficit and current account deficit, which constitutes a major subject of discussion in the literature, in terms of traditional and Ricardian approaches. The relationship between the budget deficit and the current account deficit with data from 2006:1-2010:12 has been tested empirically by employing bound test, VAR analysis and Granger causality test. The current account deficit is assumed to be equal to the foreign trade deficit. According to bound testing approach, it was found that there is no relationship between these two deficit in the long run. It is consistent with the Ricardian approaches. The results of the VAR analysis for establishment of short-term dynamics of the budget deficit and current account deficit show that there is bi-directional relationship.

239

Twin Deficits Hypothesis , ARDL , VAR Analysis , Granger Causality Test

Journal Of Economics and Administrative Sciences, Ataturk University

258