The effect of foreign trade on the economic development: 1981-2005 a practice on the Turkey

The new economic order which appeared at the end of World War The Second aimed at the economies of the countries that were destroyed a lot in social, political and economic way to get developed by an intensive industrial attack.When we have considered the situation from the past to the present, it is understood that all the mentioned attacks of development have been applied which were accompanied by the certain foreign commercial strategies. In this context, due to the countries, foreign trade has always had a key role at the world?s conjuncture. For especially the developing countries in which development has already been a necessity, this role has sometimes become focused on export, and it has sometimes tended to replace by import. However, in both situation, the objective has been to reach at the level of prosperity of the developed countries.In this study, the effect of Turkish foreign trade on the economic development of Turkey between the years 1981 ? 2005 has been analyzed.In the first part of the study; the foreign commercial theories have been explained and the concept of development has been defined, and its theoretical structure has been told. While doing it, an evaluation has been reached through underdevelopment and the facts of growth. Furthermore, the relation of foreign trade and development has been evaluated due to the strategies of foreign trade by means of both theoretical and application experiences.In the second part of the study; however the development process of Turkey has been analyzed under three main headings like period of republic, the planned period and the period after 1980 in a historical scope of viewpoint.On the other hand, in the third and final part of the study; the effect of Turkish foreign trade on the economic development has been tested between the years 1981 ? 2005. In the study, as the dependant variables, the variables of health, communication, education and access which are the four different indicators of development have been used, and as the independent variables, the share of foreign trade within the dressing as a whole has been used. In this study, in order to measure the relation between foreign trade and development, the methods of Granger casuality and Johansen cointegration tests have been used. Granger casuality and Johansen cointegration tests, have made the result clear that Turkish foreign trade isn?t effective on development.