The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey

Turkey experienced economic crises in 1980, 1994, 2001, and 2008. Each crisis had different causes and consequences; however, domestic and external borrowing had a common effect of rising instability before and during each of these crises. This study investigates economic crises and the trajectory o...

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Main Authors: Cansu Aydın, Mehmet Cural
Format: Article
Language:English
Published: Istanbul University Press 2022-04-01
Series:Maliye Çalışmaları Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/D16B0E42F64842CF91217A180186C2E0
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author Cansu Aydın
Mehmet Cural
author_facet Cansu Aydın
Mehmet Cural
author_sort Cansu Aydın
collection DOAJ
description Turkey experienced economic crises in 1980, 1994, 2001, and 2008. Each crisis had different causes and consequences; however, domestic and external borrowing had a common effect of rising instability before and during each of these crises. This study investigates economic crises and the trajectory of domestic and external debts in Turkey in 1994, 2001, and 2008, analyzing each economic crisis period in five-year episodes, including two years prior to the crisis, the year of the crisis, and two years following the crisis. The relationship between economic crises anddomestic and external debt is evaluated according to the share of borrowing to total borrowing and debt burden variables. The study seeks to determine whether the trajectories of domestic and external debt indicators share similar behaviors before, during, and after the 1994, 2001, and 2008 economic crises in Turkey. The findings indicate that the amount of domestic and foreign debt, and the share of external debt to total borrowing increased in the year prior to each economic crises. Similar trends were not observed in the year of the economic crises or in the following two years. This is an indication that the debts were unsustainable prior to the economic crisis. Hence, the sustainability of debts is critical for tackling the economic crisis.
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spelling doaj-art-60f16a4572a145f59619562b09a7fefb2025-08-20T02:15:59ZengIstanbul University PressMaliye Çalışmaları Dergisi2757-67282022-04-0167254510.26650/mcd2022-1068787123456The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in TurkeyCansu Aydın0https://orcid.org/0000-0002-3001-4249Mehmet Cural1https://orcid.org/0000-0001-8759-1904Zonguldak Bülent Ecevit Üniversitesi, Zonguldak, TurkiyeZonguldak Bülent Ecevit Üniversitesi, Zonguldak, TurkiyeTurkey experienced economic crises in 1980, 1994, 2001, and 2008. Each crisis had different causes and consequences; however, domestic and external borrowing had a common effect of rising instability before and during each of these crises. This study investigates economic crises and the trajectory of domestic and external debts in Turkey in 1994, 2001, and 2008, analyzing each economic crisis period in five-year episodes, including two years prior to the crisis, the year of the crisis, and two years following the crisis. The relationship between economic crises anddomestic and external debt is evaluated according to the share of borrowing to total borrowing and debt burden variables. The study seeks to determine whether the trajectories of domestic and external debt indicators share similar behaviors before, during, and after the 1994, 2001, and 2008 economic crises in Turkey. The findings indicate that the amount of domestic and foreign debt, and the share of external debt to total borrowing increased in the year prior to each economic crises. Similar trends were not observed in the year of the economic crises or in the following two years. This is an indication that the debts were unsustainable prior to the economic crisis. Hence, the sustainability of debts is critical for tackling the economic crisis.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/D16B0E42F64842CF91217A180186C2E0economic crisesdebt crisesborrowing preferencedomestic borrowingexternal borrowing
spellingShingle Cansu Aydın
Mehmet Cural
The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey
Maliye Çalışmaları Dergisi
economic crises
debt crises
borrowing preference
domestic borrowing
external borrowing
title The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey
title_full The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey
title_fullStr The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey
title_full_unstemmed The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey
title_short The Relationship Between Economic Crises and DomesticExternal Borrowing After 1980 in Turkey
title_sort relationship between economic crises and domesticexternal borrowing after 1980 in turkey
topic economic crises
debt crises
borrowing preference
domestic borrowing
external borrowing
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/D16B0E42F64842CF91217A180186C2E0
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AT mehmetcural therelationshipbetweeneconomiccrisesanddomesticexternalborrowingafter1980inturkey
AT cansuaydın relationshipbetweeneconomiccrisesanddomesticexternalborrowingafter1980inturkey
AT mehmetcural relationshipbetweeneconomiccrisesanddomesticexternalborrowingafter1980inturkey