Impacts of capital inflows on aggregate spending categories: the case of Turkey

Ulengin B., Yenturk N.

APPLIED ECONOMICS, vol.33, no.10, pp.1321-1328, 2001 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33 Issue: 10
  • Publication Date: 2001
  • Doi Number: 10.1080/00036840010009847
  • Title of Journal : APPLIED ECONOMICS
  • Page Numbers: pp.1321-1328


This paper discusses the impact of foreign savings on aggregate spending categories in Turkey. Using the vector autoregressive (VAR) models the major finding is that foreign savings has an increasing effect on consumption. The increase of investment arises from the accelerator effect of consumption, which results in an upward trend in investment in non-tradable sectors. Concluding that the policy of relying on foreign savings, to obtain long-term increases in tradable sector investment and competitiveness is ill-judged.