Validity of the Twin Deficits Hypothesis: the Case of Turkey (1995- 2013)

Twin deficit hypothesis is a phenomen came up with there is a relation between budget deficit and current account deficit. this study aim to the relationship between the budget deficit and the current account deficit by using the data period 1995: 1-2013: 1 in turkey. the result of var analysis show that budget deficit in turkey does not cause current account deficits so ıt was concluded that the twin deficits hypothesis is not valid.