The analysis of interrelation between economics and politics in view process policy: The case of Turkey

Economics and politics are continuously interrelated with each other. However regarding political variables as endogenous variables in economic theory has first been determined in Theory of Public Choice. As definite relations between economic variables and democratizing have not been designed, the relations between political instability and economic variables have had to be examined. In recent studies political risk index which is determined as a political stability variable and which containes more components instead of only democratizing components has been used and for the first time in this thesis the relation between political instability and economic growth is analysed by using political instability-growth Kuznets Curve Approach . Besides the analysis of interrelation between economics and politics in view of process policy is made according to low and middle income country experiences and the case of Turkey and analysis containing structural variables are used to explain interrelation between economics and politics.In this thesis by using spesific models the effect of political instability on economic process policy, the importance of structural variables explaining this effect, the degree of interrelation between structural variables and political instability are examined according to analitical diagnosis. Spesific policy suggestions are presented for policy makers according to these diagnosis.