International Science Index


10006786

The Impact of Trade Liberalization on Current Account Deficit: The Turkish Case

Abstract:

Trade liberalization and its effects on the economies of developing countries have been investigated by many different studies, and some of them have focused on its impact on the current account balance. Turkey, as being one of the countries, which has liberalized its foreign trade in the 1980s, also needs to be studied in terms of the impact of liberalization on current account deficits. Therefore, the aim of this study is to find out whether trade liberalization has affected Turkey’s trade and current account balances. In order to determine this, yearly data of Turkey from 1980 to 2013 is used. As liberalization dummy, the year 1989, which was set for Turkey, is selected. Structural break test and model estimation results show that trade liberalization has a negative impact on trade balance but do not have a significant impact on the current account balance.

References:
[1] Parikh, A. (2002). Impact of Liberalization, Economic Growth, and Trade Policies on Current Accounts of Developing Countries. UNU/WIDER.
[2] Hepaktan, C. (2008). Türkiye'nin Dönüşüm Sürecinde Dış Ticaret Politikaları. DEÜ İİBF 2. Ulusal İktisat Kongresi. İzmir.
[3] Cambazoğlu, B., & Karaalp, H. (2012). Trends in Turkey'sTerms of Trade from 1982 to 2011. Procedia - Social and Behavioral Sciences 58, 1228-1238.
[4] Li, X. (2004). Trade Liberalization and Real Exchange Rate Movement. IMF Staff Papers, Vol.51, No.3, s. 553-584.
[5] TCMB. (2002). Küreselleşmenin Türkiye Ekonomisine Etkileri. TCMB: Accessed through http://www.tcmb.gov.tr/wps/wcm/connect/1e2774ed-fd12-4be4-87d6-171e814ed612/kuresel.pdf?MOD=AJPERES&CACHEID=1e2774ed-fd12-4be4-87d6-171e814ed612 in 2015.
[6] Kazgan, G. (2013). Tanzimattan 21. Yüzyıla Türkiye Ekonomisi. İstanbul: İstanbul Bilgi Üniversitesi Yayınları.
[7] Tarı, R., & Kumcu, F. (2005). Türkiye’de İstikrarsız Büyümenin Analizi (1983-2003 Dönemi). Kocaeli Üniversitesi Sosyal Bilimler Enstitüsü Dergisi (9), 156-179.
[8] Göçer, İ. (2013). Türkiye’de Cari Açığın Nedenleri,Finansman Kalitesi ve Sürdürülebilirliği: Ekonometrik Bir Analiz. Eskişehir Osmangazi Üniversitesi İİBF Dergisi 8(1), 213-242.
[9] Eşiyok, B. (2012). Türkiye Ekonomisinde Cari Açık Sorunu ve Nedenleri. Finans Politik & Ekonomik Yorumlar Cilt 49, 64-86.
[10] Altıntaş, H. (2009). Türkiye'de Doğrudan Yabancı Sermaye Girişi ve Dış Ticaret Arasındaki İlişkinin Ekonometrik Analizi: 1996-2007. Ankara Üniversitesi SBF Dergisi 64-2, 2-30.
[11] Chinn, M., Prasad, E. (2003). M edium-term determinants of current accounts in industrial and developing countries: an empirical exploration. Journal of International Economics 59, 47-76.
[12] Ostry, J., Rose, A. (1992). An empirical evaluation of the macroeconomic effects of tarrifs. Journal of International Money and Finance, 63-79.
[13] Santos-Paulino, A. (2002). The Effects of Trade Liberalization on Imports in Selected Developing Countries. World Development Vol. 30, No. 6,, 959-974.
[14] Ju, J., Wu, Y., Zeng, L. (2010). The Impact of Trade Liberalization on the Trade Balance in Developing Countries. IMF Staff Papers, 427-449.
[15] Lopez, P. (2003). The Impact of Trade Liberalisation on the Trade Balance the Balance of Payments and Economic Growth: the Case of Mexico. European Trade Study Group Fifth Annual Conference, (s. 1-50). Madrid.
[16] Peker, O., Hotunluoğlu, H. (2009). Türkiye'de Cari Açığın Nedenleri Ekonometrik Analiz. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 221-237.
[17] Kalyoncu, H. (2006). Sustainability of Current Account for Turkey: Intertemporal Solvency Approach MPRA: Accessed through http://mpra.ub.uni-muenchen.de/1220/ in 2015.