Customs Union and export oriented industrialization strategy affects on development of Turkish economy

In 1950?s, main works about customs unions (economic integrations) were published. Furthermore, in the mid-1950s, industrialization gained the same meaning with development. Membership of Customs Union and the industrialization strategy that followed, affects not only the foreign trade but also the economic development.European Economic Community, which was established in 1957 with Treaty of Rome by six European States (Germany, France, Belgium, Holland, Luxembourg, Italy) , is still the biggest economic integration in the world which had formed customs unity.Ankara Agreement, which formed an association that based on customs union between Turkey and EC, was signed in order to improve the development of Turkish economy and to increase living standards of Turkish people in 1963.To obtain economic stabilization, obligations of Ankara Agreement and the necessity of open economy (free trade) forced Turkey to change its industrialization strategy at the end of the 1970?s. So, in the year 1980, Export Oriented Industrialization was put into practice.During the practice of Export Oriented Industrialization, Turkey was not able to achieve the production explosion, which is necessary to carry on exportation. The production structure of Turkish economy was based on industrialization strategy of import substitution. The production was in lack from the points of technology, research, improvement and technical education. In spite of all these obstacles, our exportation in consequence of Export Oriented Industrialization, increased from 2.9 billion dollars (1980) to 18 billion dollars (1994). In this period, an important structural change in the sectoral distribution of exportation occurred as well. The rate of exportation to GNP, which shows the importance of exportation in the country?s economy rises to 14 percent in 1994, while it was 5 percent in 1980.Customs Union is in force between Turkey and EC beginning from 31.12.1995. Customs Union comprises industrial products. Because of Customs Union. Turkish industry is coming face to face with foreign competition. Customs Union will force our investment and production structure to be directed towards foreign markets. We have to give importance to research, improvement and technical education in order to raise the quality and reduce costs. The increase in our exportation amounts is the sign of the integration of our economy to the world?s economy.The main method used in this research depends on utilizing and interpreting various indicators within the relation of cause and result, especially the indicators which are related to Foreign Trade and Gross National Product. It was also tried to prove the interpretations by statistical analysis.