Relation of openness and economic growth

ABSTRACTMaster ThesisRelatıon of Openness and Economic GrowthÖzlem KADERDokuz Eylül UniversityGraduate School Social SciencesDepartment of EconomicsEconomics ProgramThe changes that happened in Turkish economy influenced the foreign Trade policies and affected the foreign trade structure. We can shortly summarize these changes. While Turkey was following an import substitution strategy before 1980, it began to follow the outward looking policy process with the 24 January decision in 1980. The liberilization of the capital movement in 1989 invited the speeding. The Customs Union Treaty in year 1994 and the passing to the flexible exchange rate in 2001 are the basic factors that affected foreign trade.In this study, we tried to determine the openness between the years 1990-2010 influenced the growth. The variables used for the analysis are from the OECD webside. First of all, the standard unit root test was made on the serials. After the unit root test, we quested the existence of the relatıon between openness and growth during the years 1990-2010 with the co-integration test.Keywords: Openness, Economic Growth, Growth Models, Stationarity and Unit Root Tests