Trade Openness, Income Levels, Economic Growth, and Current Account Balances

Murat Çetrez

doi:10.37880/cumuiibf.1101244

EN TR

Trade Openness, Income Levels, Economic Growth, and Current Account Balances

Abstract

The aim of this study is to investigate if the trade openness has an effect on the income levels, growth rates, and on the current account balances together for the first time in the literature. Two different trade openness measures are used. 134 countries are added in four income groups between 1990 and 2019. There is a negative and statistically significant association between trade openness and current account balances for the group of low-income and lower middle-income countries. For upper middle-income and high-income countries, it is not identified any significant associations between trade openness and current account balances. Trade openness increases the growth for all groups except the upper middle-income countries. Results show trade openness widen the current account deficits of many of the low-income and lower middle-income countries. Sustainability of the current account deficits and external debts might be potentially an issue for many low-income, lower middle-income, and some of the middle-income countries especially if the growth rates decrease.

Keywords

Serbest Ticaret, Gelir Düzeyleri, Ekonomik Büyüme ve Cari İşlemler Dengesi

Öz

Bu çalışmada literatürde ilk kez, serbest ticaret ile ekonomik büyüme, serbest ticaret ile cari işlemler dengesi arasındaki ilişkiler eş zamanlı olarak, araştırılmıştır. İki farklı serbest ticaret indeksi kullanılmıştır. Çalışmaya 1990 ve 2019 yılları arasında, 4 gelir grubu için 134 ülke dahil edilmiştir. Düşük gelirli ülkeler ve alt orta gelirli ülkelerden oluşan ülke grubu için serbest ticaret ve cari işlemler dengesi arasında negatif, anlamlı bir ilişki tespit edilmiştir. Üst orta ve yüksek gelirli ülkeler için serbest ticaret ile cari işlemler dengesi arasında anlamlı bir ilişki bulunamamıştır. Artan serbest ticaret, ekonomik büyümeyi üst orta gelirli ülkeler hariç tüm ülke grupları için artırmaktadır. Sonuçlar serbest ticaretin düşük gelirli ve alt orta gelirli birçok ülkenin cari işlemler açığını artırdığını göstermektedir. Bu ülkeler için artan serbest ticaret ile artan cari işlemler açıkları ve yüksek dış borçlar özellikle büyüme oranları da düşerse sürdürülebilirlik sorunu oluşturabilir . Bu durum bazı üst orta gelirli ülkeler için de geçerlidir.

Anahtar Kelimeler

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Details

Primary Language

English

Subjects

Economics

Journal Section

Research Article

Authors

Murat Çetrez ^*
0000-0001-9567-7644
Türkiye

Publication Date

July 24, 2022

Submission Date

April 10, 2022

Acceptance Date

June 7, 2022

Published in Issue

Year 2022 Volume: 23 Number: 3

DOI

https://doi.org/10.37880/cumuiibf.1101244

IZ

https://izlik.org/JA65CA93XA

Cite

RIS / Bibtex

APA

Çetrez, M. (2022). Trade Openness, Income Levels, Economic Growth, and Current Account Balances. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 23(3), 760-773. https://doi.org/10.37880/cumuiibf.1101244

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