Gok, BarisCatik, A. Nazif2019-10-272019-10-2720161210-04552336-730Xhttps://doi.org/10.18267/j.pep.577https://hdl.handle.net/11454/33479In this article we analyse the evolution of the relationship between budget and trade deficits in Turkey covering the period 1985:1 to 2013:4. The structural break tests suggest the existence of a regime shift after the severe 2001 crisis. Time-varying responses obtained from the TVP-VAR model up to 2003 support the Keynesian view by providing evidence in favour of twin deficits, whereas the remaining responses suggest the remarkable divergence between fiscal and trade deficits.en10.18267/j.pep.577info:eu-repo/semantics/openAccessbudget accountcurrent accountTVP-VAR modelTurkeyArticle255607616WOS:000385990200007Q3