Finansal Derinlik ve Tasarrufların Cari Açık Üzerine Etkileri
Effects of Financial Depth and Savings on Current Account Deficit

Summary/Abstract: The aim of this study is to investigate the effects of financial depth indicators on the current account deficit. For this purpose, a panel data analysis was conducted using annual data for the period 2001-2020 for developing and potentially developing countries. According to the results of the Hausman test, it was decided that the random effects model is valid. However, since the assumptions of inter-unit correlation, changing variance, and autocorrelation were not met, the model parameters were estimated using the Flexible Generalized Least Squares (FGLS) method. The results of the study showed that all indicators included in the model have a significant impact on the current account deficit. In particular, increases in the savings rate and interest rate positively affect the current account deficit, while increases in the growth rate and inflation rate have a negative impact on the current account deficit.

• Details
• Contents