Grey Relatıonal Analysıs Between Turkey'S Macroeconomıc Indıcators And Domestıc Savıngs


Institution Of The Thesis: Gazi University, Turkey

Approval Date: 2016

Thesis Language: Turkish

Student: Engin Duran

Consultant: DİYAR AKAY

Abstract:

It is of great importance for economy policy makers to comprehend the relationship between macroeconomic indicators and domestic savings, and to find out which indicator is more determinative on the dynamics of domestic savings. This paper attempts to analyze the degree of relationship between Turkey's domestic savings and selected macroeconomic indicators. To examine the relationship, grey relational analysis is applied together with the entropy method to determine the weight of the indicators according to information level they provide. The analysis covers the data of 1990-2014 period. In practice; however, data set is used by dividing into two separate periods including before and after the 2001 crisis. The results indicate that unemployment rate, gross domestic product per capita growth and current balance ratio stand out with relatively high degree of relationship for the period before 2001. When examining the post-2001 period, current balance ratio, gross domestic product growth and gross domestic product per capita growth are ascertained as indicators which have high degree of relationship with domestic savings. These indicators have different aspects affecting both public and private savings. Therefore, it may be beneficial to concentrate on these indicators when designing a policy in order to increase domestic saving rate.