An investigation regarding the effect of Turkey's 2007-2017 extermal debt on economic growth and inflation

Developing countries with inadequate levels of income and savings resort to external borrowing to ensure their economic development. Economic growth cannot be achieved at the desired level due to reasons such as the inability of the domestic savings to reach the level of investment, the insufficiency of information and technology, the balance of payments balance, and the external borrowing for the financing of the development. The insufficiency of the national savings required for the financing of the investments necessitates the use of foreign resources. There are different approaches in the literatüre that explain the relationship between growth and external debt. According to these approaches in the literature, it is determined that there is generally a negative relationship between economic growth and external borrowing. When the external debts obtained are evaluated actively, they accelerate investments, growth and development. However, due to the fact that the external debts are not used in productive and productive departments and the rate to be paid is higher than the increase in national income, the reasons such as borrowing increase the external debt burden and decrease the welfare level of the country. Openness to the outside of the liberalization of foreign trade and economy in Turkey since 1980, are applied in external economic relations. January 24, 1980 decision in vi abandoned import substitution has experienced structural changes in Turkey's foreign debt brought industrialization policy, rather than the extrovert. This study examines the historical process in Turkey's external debt, economic growth and inflation in Turkey was discussed in the private economy. Key Words : Extermal Debt, Economıc Growth, Inflation