Import Dependency of Exports as a Cause of Current Account Deficit
DOI:
https://doi.org/10.24136/ceref.2018.014Keywords:
import dependency of exports, current account imbalances, global value chains, international tradeAbstract
The rapid increase in import dependency of exports and current account imbalances in many countries over the last two decades led many researchers to argue that they may be correlated and the increase in IDE may be the main cause of current account imbalances. This argument is important because historical evidence suggests that large and persistent current account imbalances often lead to subsequent corrective crisis. If the increase in IDE is a major cause of current account imbalances, reducing it becomes an important policy option to prevent further crisis. While there is a large literature on both global value chains (the main cause of IDE) and current account imbalances, the literature that investigates the link between them is very new and limited. This paper aims to contribute to this limited literature.
Downloads
References
Brummy, J., G. Georgiadis, J. Grab & F. Trottner (2015), „Global Chain Participation and Current Account Imbalances”, December 2015.
Cingolani, I., G. Felice and L. Tajoli (2015), External Imbalances in the European Union and International Fragmentation of Production: Is There a Link?, Centro Studi Luca d'Agliano Development Studies Working Paper No. 386. (Accessed on February 2018), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2608044
Haltmaier, J. (2015), Have Global Value Chains Contributed to Global Imbalances?, Board of Governors of the Federal Reserve System, International Finance Discussion, Papers 1154.
OECD (2017), Import content of exports (indicator). doi: 10.1787/5834f58a-en (Accessed on 28 November 2017).
The World Bank (2017), World Development Indicators, Washington, D.C.
Özenç, F. K. & Y. B. Altaylıgil (2013), Determinants of International Fragmentation of Production in Turkey, (Paper presented at the 15th European Trade Study Group Conference in Birmingham, September 12-14, 2013, accessed January 2018. http://www.etsg.org/ETSG2013/Papers/333.pdf
Ersungur, S.M., E.D. Ekinci & A. Takim (2011), Türkiye ekonomisinde ithalata bağimliliktaki değişme: girdi-çikti yaklaşimiyla bir uygulama, Atatürk Üniversitesi, İİBF Dergisi, 10. Ekonometri ve İstatistik Sempozyumu Özel Sayısı, 2011, accessed January 2018, http://e-dergi.atauni.edu.tr/atauniiibd/article/view/1025007765
Dincer, N.N. and P. Yasar (2015), „Identification of Current Account Deficit: The Case of Turkey”, The International Trade Journal, Volume 29, Issue 1.
Dogruel, F. and S. Dogruel (2009), Türkiye’de Cari Açık: Temel Sorunlar ve Dinamikler, in T. Subasat and H. Yetkiner (eds), Küreselleşen kriz çerçevesinde Türkiye’nin cari açık sorunsalı, Eflatun Yayınları: Ankara.
Subasat,T. (2016), ‘Conjunctural and policy based causes of the 2008 crisis’ in T. Subasat, The Great Meltdown of 2008: Systemic, Conjunctural or Policy-created?, (Edward Elgar: London).
Riad, N., L. Errico, C. Henn, C. Saborowski, M. Saito and J. Turunen (2012), „Changing Patterns of Global Trade”, IMF Departmental Papers, No. 12/1, accessed January 2018, https://www.imf.org/external/np/pp/eng/2011/061511.pdf
Saygılı, M. and H. Saygılı (2009), ‘Türkiye’de İhracatın Yapısal Dönüşümü’, in T. Subasat and H. Yetkiner (eds), Küreselleşen kriz çerçevesinde Türkiye’nin cari açık sorunsalı, Eflatun Yayınları: Ankara.
Sydor, A. (2011), Editor’s Overview, in A. Sydor (Ed.), Global Value Chains: Impacts and Implications, Trade Policy Research. Foreign Affairs and International Trade Canada, accessed January 2018, http://www.international.gc.ca/economist-economiste/assets/pdfs/research/TPR_2011_GVC/02_Editors_Overview_e_FINAL.pdf
Yeldan, E. (2005), „Türkiye Ekonomisi’nde Dış Açık Sorunu ve Yapısal Nedenleri”, Çalışma ve Toplum, 4: 47–60.
