Abstract:

Foreign debt is a global problem, especially for developing countries, and in future developments. According to the basic economic theories, external debt, investment and labour efficiency should be influenced. Developing countries are faced with a problem of funding, such as high currency and budget disadvantages, while developing countries are faced with a problem of funding, such as increasing their individual well-being, stability, independence, and increasing their individual prosperity. The analysis of the Turkish economy using the annual data of the period between the 1990-2019 years Distributed Otoregresive Model -ARDL, error correction model (VECM) combination and Toda Yamamoto Causability methods have been used. The results of the analysis show that there is an interaction and equalization between external debt and economic growth. According to the results of the analysis, long-term economic growth and inflation have a positive effect on external debt, while commercial transparency has a negative effect on economic growth from external debt to external debt burden and there is no causal relationship from external debt to economic growth. External debt is a good cause. Inflation to external debt is a causal relationship that indicates that as inflation rises, the external debt burden increases but when external debt burden increases, the inflation does not rise. Between inflation and economic growth there is a dual causal relationship.