The Turkish Current Account, Real Exchange Rate and Sustainability

The Journal of International Trade and Diplomacy, Vol.1, No.1, pp. 155-192

Posted: 30 Jul 2018

See all articles by Sübidey Togan

Sübidey Togan

Bilkent University

Hakan Berument

Bilkent University - Department of Economics

Date Written: 2007

Abstract

Embarked on an accession path to the European Union (EU), Turkey needs higher investment ratios to sustain high growth rates for a prolonged period so as to sustain convergence with the EU. In a fast medium-term growth scenario, pressures on the current account are likely to emerge as investment will need to increase while fast income growth will also boost consumption and imports. However, in the case of Turkey, large current account (CA) deficits are also likely to be combined with an appreciating real exchange rate, as in the past few years, in response to robust capital inflows as Turkey gets closer to EU accession.

Suggested Citation

Togan, Subidey and Berument, Hakan, The Turkish Current Account, Real Exchange Rate and Sustainability (2007). The Journal of International Trade and Diplomacy, Vol.1, No.1, pp. 155-192, Available at SSRN: https://ssrn.com/abstract=3210694

Subidey Togan

Bilkent University ( email )

Bilkent, Ankara 06533
Turkey

Hakan Berument (Contact Author)

Bilkent University - Department of Economics ( email )

06533 Ankara
Turkey

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