Abstract:

The most important indicator of economic development is production. The most important input of production, which is of great importance for countries, is energy. Countries like Turkey, which are insufficient in terms of energy resources, meet a large part of their energy needs by importing. The high energy imports of these countries, which are dependent on foreign energy, cause a current account deficit. In the study, the relationship between Turkey's energy imports and the balance of payments balance was examined by time series analysis methods. In the study, current account balance is the dependent variable, oil and natural gas import amount, industrial production index, GDP and real effective exchange rate are the independent variables. Quarterly data for the period 2007Q1-2021Q3 were used in the study. As a result of the research, it was determined that the amount of natural gas and oil imports and the variables of the industrial production index negatively affected the current account balance. It is thought that increasing Turkey's investment in renewable energy resources, improving and developing existing power generation facilities and distribution channels will reduce the current account deficit.

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