Gümüşhane Üniversitesi Sosyal Bilimler Dergisi

Öz

One of the most important macroeconomic goals of countries is economic growth. In order to achieve this aim, the production levels of countries must be increased. Increasing the production level depends on the amount of investment. One of the main factors that determines the quantity of investment is the level of savings. The level of savings shows the quantity of capital, that is, the level of financing of an economy. Countries with a low level of domestic savings refer to foreign resources to finance their investments. In other words, they prefer the external borrowing method. At this point, the relationship between external borrowing and economic growth has emerged as a research topic. The aim of this study is to analyze the effects of public sector external debt and private sector external debt on economic growth in Turkey with quarterly data for the period 2011-2019. In the study, ARDL bound test method has been used to determine the short term and long term relationship between the variables. According to the findings of the study, while public sector external debt negatively affects economic growth in the long term, it positively affects economic growth in the short term. Also, the analysis results showed private sector external debt positively affects economic growth in the long term, it negatively affects economic growth in the short term.