The Analysis of the protection structure of the Turkish industry in the process of outward orientation

The main purpose of our study, the title of which is "The Analysis of the Protection Structure of the Turkish Industry in the Process of Outward Orientation" is to determine and evaluate the structure and development of protection in the Turkish manufacturing industry for the period after the early 1980's, during which more liberal foreign trade policies have been pursued in line with the efforts of outward orientation and liberalization. The study consists of four chapters. The first two chapters are devoted to theoretical discussion of the subject matter, and the last two chapters to the Turkish experience. Chapter One contains explanations about the meaning and measurement of protection, and the place of protectionist and liberal approaches in development of foreign trade theory. In the Second chapter, the means, effects and aims of protective trade policies are discussed theoretically. In chapter Three, the major transformations in Turkey's foreign trade policy for the periods before and after 1980 are presented, and then the protection structure of industry is examined for the period before 1980, during which inward-looking, import substitution policies were pursued. In chapter Four, nominal and effective protection rates in the Turkish manufacturing industry are measured for the period after 1980, and the effects of outward-oriented export promotion industrialization strategy adopted in this period are analysed. The findings of our study show that both nominal and effective protection rates in the Turkish manufacturing industry have been considerably dropped since the early 1980's, as a result of the implementation of more liberal trade and exchange-rate policies. The efforts towards the completion of customs union with the Eurpean Union have also played an important role in the lowering of protection rates in Turkey. When taking in to account the fact that Turkish producers under such lowered protection rates, it can be proposed that Turkish industries should be supported through instruments which are in accordance with the Customs Union and GATT rules. Within this framework, priority should be given especially to the promotion of investment which will improve efficiency and quality in production.