Does credit composition matter for current account dynamics? Evidence from Turkey

Toraganli N., ERTUĞRUL H. M.

Journal of International Trade and Economic Development, vol.25, no.8, pp.1090-1100, 2016 (SSCI) identifier


Based on a dynamic approach using the Kalman filter we depict effects of time-varying interactions between different components of credit stock on the current account in the Turkish Economy for the period 2002Q3–2014Q3. We decompose the credit stock into consumer and non-financial corporate sector credit and show empirically that both types of credit stock have negative effects on the current account dynamics.