SUSTAINABILITY OF THE CURRENT ACCOUNT DEFICIT: THE CASE OF TURKIYE (2003-2023)

Abstract

Related discussion of current account deficit sustainability has currently been attracted topic in
applied macro and international economics. Aim to this study has been investigated whether
current account deficit sustainable or not with unit root tests. In this study, the existence of a
unit root has been examined by nonlinear tests techniques and variety of nonlinear unit root
tests have been utilized. These tests are Cuestas and Ordonez (2014), Cuestas and Garratt (2011)
and Park and Shintani (2016). Obtained findings show that null hypothesis of nonlinear unitroot tests have been rejected and series have been accepted nonlinear mean reversion. It means
that current account deficit is sustainable and stationarity. This result is consistent with some
of other researches that made in the literature. In the end of the study, it has been provided
policy proposal and recommendations for providing sustainability of current account deficit.