Foreign trade policy and i̇ts applications in Turkey

As from point of Turkish economy, the base of Turkish industrializatıon policies has been "Import Substıtutıon" during 1960's and 1770's. Starting from 1980's, export-oriented industrializatıon policies have been implemented. While promoting these policies and liberalizatıon of foreign trade, quite a number of structrual transformatıons have taken place at Turkey's economic policies. However, macro economic problems such as, chronic high inflatıon, lack of sufficient investment in manufacturing industries, inadequate progress at the level of productivity necessary for global competıtıon, unbalanced goverment finance and high real interest rates slowed down the required transformatıons. İncreasing domestic and foreign debts, high dependency of exports to imports, over-valued Turkish Lira, dependency on imported inputs, budjet, foreign trade and foreign exchange deficits, high interest rates and lack of sufficient investment in manufacturing industries are the main structural problems of the recent years. Recently, increase in import is over the increase in export in Türkish economy. Due to this fact current account deficit increases. İn the recent years because of the over valued Turkish Lira, export dependent industry has begun to use import ınput to carry on export. Export of ındustry goods which has the most important rate in Turkish export, depends on the intermediate good import which is the crucial element of the Turkish import. As a consequence, import ınput rate which is used for the productıon of export has reached the level of 66,5 %. For that reason dependency pf export to import that reaches the level of 70 % continues to be an important problem. The success of ındustry based on export depends on the improvement of industry that produces intermediate goods. İf this improvement is not achieved the problem related with foreign trade deficit will increasingly continue. To prevent this and to turn the structural process inside out, the policies which support the improvement of producing intermediate and capital goods should be followed.