Export diversification and economic growth

Export-led growth hypothesis is considering not only quantity of export also composition of export. These papers emphasis export diversification as needs of developing countries in terms of export revenues and increase stability. Exportdiversification effect macroeconomic indicator positively by increasing foreign exchange revenue and stability in foreign exchange revenue. After 1980, Turkey adopted export led growth strategies and carried out comprehensive programs topromote exports. Testing this theory for turkey is important to understand how policy changing affected on economic growth. In this respect the basic purpose of the study is analysis of the relationship between export diversification and economic growth in Turkey. In this context, firstly Turkey's exports diversification level will be find out. Then empirical relationship between export diversification and economic growth will be determined. Turkey's level of export diversification will be determined by calculating the Gini-Hircshman coefficient, the Concentration Index and Normalize Hircshman Index. The Granger causality test will be used for analyses the relationship between the level of diversification and economic growth. Firstly, ADF unit root test will be applied to test stationary of time series and the Granger causality test will be test to find presence and direction of the relationship between variables.In the study for determining the level of diversification data will be used from the UN Comtrade Database of Foreign Trade (SITC Rev. 1 Dig. 3). Other macroeconomic variables that used in the analysis of causality will be taken from the World Bank Database.Results show that there is no casual relationship from export diversification towards economic growth for Turkey between 1962 and 2008. However there is a casual relationship from economic growth towards export and also there is a casual relationship from export towards export diversification.