Relationship between foreign trade regime and economic development; The case of Turkey

In this study, international trade regimes applied in Turkey from the year 1923 to the years 2000s and their effects on economic development are examined. International trade regimes applied in 10-year periods and how foreign trade is shaped, changes in exports and imports, and developments in different sectors are explained. At the same time, the process of industrialization and policies implemented in Turkey are studied. For that reason, improvement in all sectors such as agriculture, manufacturing and service as well as their contribution are the primery focus of the study. Relation between international trade policies and economic development changed in different periods. Because international trade is not the only the factor that influences economic development. Moreover, international trade regimes in Turkey varied from period to period based on domestic economic policies together with changes in the World and political environment. Turkey‟s relations with other countries are detarminant for economy policies. Within the historical process, foreign trade relations with trading partners had been addressed. Turkey tried liberal policies between 1923-1929, but industralization couldn‟t reach the level unticipated earlier, etatist economic policies were replaced. In 196os, Turkey started to apply import-substitution industrialization and also era of economic plannig started. Until 1980 intervention of states was intense and process of liberalization in the economy started within this period. Since 1980 Turkey has been applying free market economy and liberal foreign trade policy accordingly. The objective of this study is to evaluate foreign trade regimes which were applied and examine the relations between economic development. For that purpose, export and import, namely foreign trade balance and growth rate are studied in different periods within the economic policies applied precisely.