The foreign debt problem of Turkey after 1980 and its impact on economic growth

Foreign debt, domestic savings are insufficient in terms of economic development of developing countries such as Turkey, have intensively applied as a financial resource.One of the most important development in Turkey has been in the field of foreign economic relations since 1980. It is the most important indicators of foreign trade liberalization and outward-oriented economy into a structure. By the decisions of January 24, 1980, leaving import substitution industrialization period started flaring. This process of structural transformation has experienced significant changes in the Turkey's foreign debt. In this context, with the data given by Turkish Statistical Institution, Undersecretariat of Treasury, State Planning Organization Turkey's economy more debt through official channels,after these developments has begun intensively to borrow from private sources.In this study, the definition of external debt, after giving theoretical information such as reasons for Turkey's external borrowing during 1980-2009 at which the movement of various macro-economic indicators to be analyzed and studied the relationship between external debt and economic growth are discussed in terms of Turkey's economy.Keywords: External Debt, Economic Growth, Foreign Debt Ratios, Budget Deficit,