Effect of national income in Turkey: Period of after 1980 and an empirical research

ABSTRACT The only purpose of economical activities' in a country is to increase individuals' and society's welfare.Generally the most important criteria of welfare level in an economy is national income.For this reason, national income has been always considered as a a very important subject by economists. There are many factors that effects national income. One of these factors is export which has a similar impact on the growth of national income just as import substitution, domestic demand and technological advances.The main purpose of this study is to analyse the effect of export on national income in Turkey. The growth of export increases the national income with multiplier mechanism and directly effects the economic development.Thereby it supports the economic development by making the import of the required capital properties easier for the country. Furthermore, the press of competition increasing with the growth of export acctivates the local producers to find new products and research the methods to increase the guality while decreasing the prices. This also accelerates the economic development by promoting the use of new technologies. In this study, impacts of the export-oriented foreign trade policy changes in Turkey after 1980 on export are examined to determine, how these changes effected the national income by using cointegration and casualty analyses. nThe research outcomes showed that there is a long term relationship between export and national income. It is determined that increases in export are the reasons for the growth of national income and the relationship between export and national income which is foreseen by the theory is confirmed empiricaly. in