We test for sustainability of Turkey’s current account position between 1992 and 2007 using the intertemporal solvency … tests to determine linkages between exports and imports+ in Turkey. Using the Johansen test we find no cointegration and …

account. We find consumption tilting dynamics are in effect. As expected of borrowing developing countries, Turkey tilts … and testable implications we believe that although Turkey breached the intertemporal solvency condition in the 1990s, this … is not true for Turkey in the period following the 2001 crisis. Therefore, we conclude that changed fundamentals in …

In this paper we assess the present sustainability of Turkey’s current account position using the framework provided by … conclude that Turkey’s internal structure and macroeconomic conditions (such as exports and the fiscal position) have improved … that are allowing Turkey to continue having large and increasing current account deficits. However, there is vulnerability …