@article{2017,title={Foreign debt and sectoral production: Case of Turkey},abstractNode={The relationship between external debt and economic growth has been analyzed for many countries with many different hypothesis and the issue is vivid at almost every period of Keynesian policy application. Although earlier results are far from reaching a general conclusion, recently the literature indicate the importance of debt sustainability that lead to the existence of a non linear relationship between these two variables. On the other hand, it is documented that during the attempts to overcome the last financial crises, less investment intensive sectors grew relatively higher than others. With these information at hand this study searches for a linkage between external debt and sectoral distribution of production rather than focusing on the positive /negative effect of external debt on economic growth. The causality relations between external debt and sectoral composition of the economy is searched by Toda Yamamoto approach to Granger causality analysis. The results indicate that there is a two way causality relation between the sectoral composition of production and external debt and there exists no causality relationship between total investment level and the sector based distribution of production.},author={Oya ERDOGDU},year={2017},journal={The Journal of Social Sciences}}