CAN TURKEY’S CURRENT ACCOUNT DEFICIT BE REDUCED?
Journal Title: Muhasebe ve Vergi Uygulamaları Dergisi - Year 2018, Vol 10, Issue
Abstract
One of the important problems of Turkey in the economic field is the current account deficit problem. This problem is involved in the encounter with Turkey in periods of economic crisis and this restricts the area of movement in the economic sense. In this sense, it is necessary to bring permanent solutions together with the reducing of Turkey’s current account deficit for the minimization of the risk of confrontation of Turkey's steady growth and economic crisis. Causes of current account deficit include external dependency of production and consumption activities, cyclical fluctuations such as exchange rate fluctuations, high energy costs as the main source of production, and high fluctuations in domestic and foreign demand. In this context, the production, consumption and saving structure of the country's economy are effective in the current account deficit. As a result of this impact, it requires structural precautions in production, consumption and saving areas to reduce the country’s current account deficit. The current account deficit is closely related to the import dependent production policy of the country's manufacturing sector. The use of national products instead of imported products in the production of exported products will have an important effect on the contraction of the current account deficit. Another important structural problem is the high utilization of energy resources in production activities and externalization in supplying these resources. The possibility of turning the situation against the current account deficit is expected to be achieved by the reduction of external dependence and use in production channels with the use of new technologies such as nuclear energy in the field of energy. With the determination of the factors that are effective in confronting the current account deficit, policies should be put forward to close this deficit. In this study, policies and solutions for reducing the deficit will be discussed.
Authors and Affiliations
Muhammet KEKEÇ, Serdar KUZU
Keywords
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- EP ID EP414754
- DOI 10.29067/muvu.384919
- Views 88
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