Current Issues in Finance, Economy and Politics

Debelle and Faruqee (1996)

1971–1993/ 21 Developed Countries

Horizontal Section, Time Series and Panel Data Analysis

Economic growth increases the current account deficit.

Bagnai and Manzocchi (1999)

1965–1994/ 49 Developing Countries

Time Series and Panel Data Analysis (LSDV)

Economic growth increases the current account deficit.

Freund (2000)

1980–1997/ 25 Industrialized Countries

Time Series and Panel Data Analysis

Economic growth increases the current account deficit through consumption expenditures.

Calderon, Chong and Loayza (2000)

1966–1995/ 44 Developing Countries

Panel Data Analysis (GMM)

There is an inverse but weak relationship between the current account balance and economic growth.

Kandil and Greene (2002)

1960–2000/ USA

Cointegration Analysis

Increases in GDP increase the current account deficit through the import channel.

Chinn and Prasad (2003)

1971–1995/ 18 Developed, 71 Developing Countries

Panel EKK Analysis

There is a weak relationship between growth and current account balance in both developing countries and developed countries.

Parikh and Stirbu (2004)

1970–1999/ 42 Countries in Total from Asia, Africa and Latin America

Panel Data Analysis

Economic growth increases the current account deficit.

Dominguez (2005)

1980–1990/ Singapore

Smallest Squares (EKK)

Economic growth increases the current account deficit.

Erkılıç (2006)

Turkey/ 1980–2005

EKK and VAR

There is a one-way causality relationship from the rate of economic growth to the current account deficit.

Tunalı (2007)

Turkey/ 1980–2006

Classical Linear Multiple Regression Model and VAR

One of the most important reasons for the current account deficit in the long term is economic growth.

Aristovnik (2007)

1971–2005/ Middle East and North Africa (MENA) Countries

EKK, LSDV, FGLS and GMM

Economic growth increases the current account deficit.

Erbaykal (2007)

Turkey/ 1987–2016

Toda and Yamamoto Causative Analysis

Economic growth is the cause of the current account deficit, and there is a reason for economic growth in the current account deficit.

Telatar and Terzi (2009)

Turkey/ 1991–2005

Granger Causality Test and VAR

There is a one-sided causality from the growth rate to the current account balance.

Morsy (2009)

1970–2006/ 28 Oil Exporting Countries

Panel Data Analysis (GMM)

Economic growth has no effect on the current account deficit.

Yılmaz and Akıncı (2011)

Turkey/ 1980–2010

Granger Causality Test

There is a one-way causality from GDP to the current account balance.

Kostakoğlu and Dibo (2011)

Turkey/ 1991–2010

VAR

Economic growth increases the current account deficit.

Sekmen and Çalışır (2011)

Turkey/ 1998–2009

ARDL

There is a positive relationship between economic growth and current account deficit in the short term; however, there is no relation in the long term.

Bayraktutan and Demirtaş (2011)

1980–2006/ 19 Developing Countries

Panel Data Analysis

Economic growth is increasing the current account deficit.

Hepaktan and Çınar (2012)

1975–2008/ 27 OECD Countries

Panel Cointegration Analysis

There is a cointegration relationship between GDP and the current account balance.

Akçay and Erataş (2012)

1993–2011/BRIC countries

Panel Data Analysis and Dumistrescu-Hurlin Causality Test

In the long term, a causal relationship between economic growth and current transactions has been identified.

Songur and Yaman (2013)

1981–2010/ 10 Developing Countries

Panel Cointegration and Panel VECM

In the long term, a causality relationship was determined from economic growth to current transactions and from current transactions to economic growth.

Yalçınkaya and Temelli (2014)

1992–2013/ BRICS and MINT Countries

Panel Data Analysis

Both short- and long-term economic growth has been determined to be effective in the current account.

Yurdakul and Uçar (2015)

Turkey/ 1991–2014

Granger Causality Test and VAR

There is no correlation between economic growth and the current account deficit.

Şit and Alancıoğlu (2016)

Turkey/ 1980–2014

VAR

There is a two-way causality relationship between GDP and current account balance.

Erdoğan and Acet (2016)

Turkey/ 2003–2015

Granger Causality Test and VAR

There is a two-sided causality relationship between economic growth and current account balance.

Duman (2017)

Turkey/ 2003–2017

VAR

There is a one-sided causality relationship between economic growth and current account balance.

Uçak (2017)

Turkey/ 1980–2015

Granger Causality Test and VAR

There is a one-way causality relationship from real GDP to the current balance.

Ersungur et al. (2017)

Turkey/ 1998–2014

VAR

There is a two-way causality relationship between GDP and current account balance.

İslatince (2017)

Turkey/ 2003–2016

ARDL

The current account deficit has a negative impact on economic growth in both the short and long term.

Source: Edited by authors.