Macro economic effects of openness in Turkey

There are a lot of researches in Turkey that examines the relationship between openness and growth when inspected the literature about the macro economic effects of openness. On the other hand, the studies examining the relationship between openness and productivity, inflation, unemployment, foreign debt, real exchange rate are rarely encountered. The purpose of this study is to examine openness effects on labour productivity, inflation and unemployment rates. Firstly in this thesis; it has been theoretically given the relationship between openness and all the variables under consideration. Then for the purpose of this study, the hypothesis about that openness will increase labour productivity and will reduce inflation and unemployment rates was tested by Johansen co-integration method. The thesis consists of three sections. In the first section, definitions for the subject of the thesis and conceptual framework are given. In the second section, firstly; development of world trade is given briefly, the historical development of openness in Turkey is given latter. In the third section, openness effects of labour productivity, inflation and unemployment rates are examined econometrically and findings are interpretted within the scope of theoretical framework.