Is Fiscal Policy Sustainable in Turkey?
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Date
2010
Authors
Ucal, Meltem
Alici, Asli
Journal Title
Journal ISSN
Volume Title
Publisher
M.E Sharpe Inc.
Open Access Color
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Abstract
The issue of the budget deficit has become one of the main themes of the economic policy implemented in Turkey and backed by the International Monetary Fund (IMF) following the economic crisis of 2001. The main motivation for this study is the question of whether or not the government's financial policy is sustainable and satisfies the government's long-term budget constraint. The empirical analysis is based on tests of whether government expenditure and revenue are cointegrated considering the economic liberalization period of 1989-2008. The stability of fiscal policy is examined using the Johansen multivariate cointegration method. The findings of the sustainability tests indicate that fiscal policy from the liberalization of the economy up until the 2001 economic crisis was not sustainable.
Description
Keywords
Budget deficit, Cointegration, Financial policy
Turkish CoHE Thesis Center URL
Fields of Science
Citation
5
WoS Q
Q2
Scopus Q
Q1
Source
Volume
46
Issue
Start Page
83
End Page
93