The effects of international trade in services on current account balance and economic growth: The case of Turkey


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DOI:

https://doi.org/10.47243/jos.3.1.03

Keywords:

Current Account Deficit, Economic Growth, Trade in Services, Causality Analysis, Turkey

Abstract

In the last 30 years, with the rapid developments in information, production and communication technologies, the share of goods and services in world trade has been constantly increasing. Important developments have been achieved in international service areas such as tourism, construction and contracting services and transportation in turkey. Turkey's international services trade revenues positively affect the current account balance and economic growth. In this study, the relationship between the current account balance and economic growth of international service trade in turkey was analyzed using annual data covering the period 1990-2020. For this, ADF (1970) and DF-GLS unit root tests, Bayer-Hanck cointegration test and Fourier Toda-Yamamoto causality tests were applied. According to the causality analysis findings, it was concluded that there is a one-way causality relationship from growth to services trade and a two-way causality relationship between current account deficit and services trade.

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Author Biography

Mustafa Torusdağ, Van Yüzüncü Yıl University/TURKEY

Dr. Öğr. Üyesi

VAN YÜZÜNCÜ YIL ÜNİVERSİTESİ/İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ/İKTİSAT BÖLÜMÜ/İKTİSAT POLİTİKASİ ANABİLİM DALI

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Published

16.02.2022

How to Cite

İnançlı, S., & Torusdağ, M. (2022). The effects of international trade in services on current account balance and economic growth: The case of Turkey. JOURNAL OF ORIGINAL STUDIES, 3(1), 31–42. https://doi.org/10.47243/jos.3.1.03

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