Turkey has been implementing tight fiscal and monetary policies for years. These policies rely on the basic understanding that savings trigger growth and investments. However there are alternative theoretical discussions and empirical findings related to the interaction among these variables. In...

This paper discusses the impact of foreign savings on aggregate spending categories in Turkey. Using the vector autoregressive (VAR) models the major finding is that foreign savings has an increasing effect on consumption. The increase of investment arises from the accelerator effect of...