Research Information System
Economie Internationale, vol.105, no.1, pp.63-83, 2006 (Scopus)
For the last two decades Turkey has had both current account and budget deficits. By using the tools of VAR method, such as cointegration, Granger causality tests and instantaneous causality tests, we show that the existence of these two deficits in Turkey cannot be defined as "twin deficits". The persistence of budget deficits, in spite of primary surpluses, is due to the high level of real interest rates and to the burden of debts caused by high real interest rates. The current account deficit is due to Turkey's production structure. Specifically, Turkey imports intermediate goods in order to export them later as finished goods. © La Doc. française.