International Conference on Eurasian Economies
9-11 September 2015 – Kazan, RUSSIA
Paper detail
Paper ID : 1213
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Assoc. Prof. Dr. Sabri Azgün
Session : 3B Makroekonomi
Implications of Intertemporal External Budget Deficits in Euroasian Countries
Avrasya Ülkelerinde Zamanlararası Bütçe Kısıtının Göstergeleri
- Assoc. Prof. Dr. Sabri Azgün (Atatürk University, Türkiye)
Abstract
Economies should pay attention to the deficits of the balance of payments in order to achieve a sustainable economic growth and development within the process of globalisation. A country having risks in terms of current account deficits can be evaluated as the current economic policy is having problems at present and will have in days to come in the point of sustainability. The sustainability of the current account deficits are defined by the intertemporal budget constraint. According to the budget constraints, the path of outlays to the external world with revenues obtained from abroad determines intertemporal solvency contidion. If there is no long-run equilibrium relationship between these two variables, intertemporal budget constaint will not be provided. The aim of this study is to determine whether it satisfies the intertemporal solvency condition of Euorasian economies for the period 2005Q1-2014Q4. In this study, by analyzing intertemporal externel budget consratint by unit root and cointegration methods, it is examined that carries potantieal risk in terms of the current account balance of Euroasian economies.
JEL codes: F32, F41, E17
Azgün, Sabri (2015). "Implications of Intertemporal External Budget Deficits in Euroasian Countries" in Proceedings of International Conference of Eurasian Economies 2015, pp.209-214, Kazan, RUSSIA.
DOI: https://doi.org/10.36880/C06.01213
