@article{2016,title={THE RELATIONSHIP BETWEEN CURRENT ACCOUNT BALANCE AND ECONOMIC GROWTH: TURKEY CASE(2003-2015)},abstractNode={Current account deficit is one of the most significant macroeconomic issues for Turkey like all the world countries. Also, the high ratio of current account deficit to gross domestic product is accepted as a leading indicator of a crisis. Taking into account all of these, the relationship between current account balance and economic growth is an important issue for economics literature. In this study, it is analyzed the relationship between current account balance and economic growth after transition to the strong economy program for Turkey by using the quarter data with the help of VAR analysis. Due to the data used in this study is quarterly, it is seasonally adjusted. In addition, stationarity of data is examined because it involves time series. It is found that at %5 level of significance, data is stationary at level. Lag lengths are specified before implying VAR method. After lag lengths specified, Impulse-Response Analysis is conducted. After Impulse-Response Analysis, Variance Decomposition Method is used in order to decide how many percent of change arise from itself and how many percent of change arise from other variables. According to Variance Decomposition Method, tenth term current account balance is arise from itself 84,6 percent and from economic growth 15,4 percent. Likewise, tenth term economic growth is arise from itself 87 percent and from current account balance 13 percent. According to the result of analysis, it is find that there is a bidirectional causality between economic growth and current account balance for Turkey at 10% significance level. Also, the relationship between variables is proved strongly with the correlation coefficient.},author={Hakan ACET-- Savaş ERDOĞAN},year={2016},journal={The Journal of Academic Social Science Studies}}