Examination of Financial Sustainability in Turkey (2002-2018)
Ersin Gümüş

In this study, the concept of sustainability for the economy of Turkey was examined not only as fiscal sustainability but also as financial sustainability, including the sustainability of the debts of the private sector. This study uses the quarterly data of the period between 2002:1 and 2018:4, including the variables of EU-Defined General Government Debt Stock/GDP, Public Net Debt Stock/GDP, Net External Debt Stock/GDP, Non-financial Private Sector Loan Usage/GDP, GDP Growth, Real Interest Rate of Commercial Credits, and Real Interest Rate of Government Domestic Debt Securities. It also analyzes the stationarity of the series by employing ADF and Zivot-Andrews unit root tests, and it examines the data with graphics of the variables. In light of the findings of the analyses and examinations, there were no positive or negative significant results in terms of fiscal sustainability, while results were found suggesting that financial sustainability may not be achieved.

Full Text: PDF     DOI: 10.15640/jfbm.v7n2a3