Are the Turkish External Deficits Sustainable? Evidence from the Cointegrating Relationship Between Exports and Imports

This paper aims to understand the recent history of Turkish external imbalances by examining the long-run tendency of the Turkish trade balance. The size of the Turkish external deficits especially during the 1990s has worried politicians, academicians and the general public. Following recent work in the field, the paper examines the sustainability of the external deficits in the long-run by employing the cointegration framework