Özet:

The concepts of current deficit and economic growth which are related to each other are among the most important macroeconomic indicators that provide with information about a country’s economic structure. Especially seen in the recent years; the high growth rates coming along with globalization process cause current account to have deficits by increasing the need for intermediate goods in production and by satisfying these needs via importing these goods. The increased current deficits affect growth process in a negative way by increasing sovereign risk and refer to the outbreak of crises; and also, they affect the short and long-term future plans of the domestic and foreign investors. The aim of this study is to investigate the relationship between current deficit and economic growth in terms of Brazil. In practice, current account deficit and economic growth variables are used. First, the unit root test was applied to the variables, and then the cointegration test was performed. Finally, the Granger Causality Test was applied for the causality relationship between the variables. As a result of the Johansen Co-integration Test applied to these variables, it is concluded that the subject variables are co-integrated. In order to determine the causality relationship between variables, Granger Causality Test was applied and as a result of the test, the variables were found to be related to one another; also, a mutual –two way- relationship between economic growth and current deficit was found for Brazil.

Anahtar Kelimeler: