Implementation of Export-led Growth Strategy in Turkey and Effectiveness on Manufacturing Industry: Causality Analysis (1990-2008)

Turkey has put export-led growth strategy into practice since 1980 giving up import substitution strategy. Undoubtedly, manufacturing industry has big importance in achieving industrialization which has the same meaning with development for developing countries. Turkey aimed to provide economic growth by improving structure of export with direction of comperative advantages, completing liberalization process on a large scale in 1990’s and applying important policies aimed at industrialization. In this study, effectiveness of export-led growth strategy is examined in the extent of Turkish manufacturing industry. The analysis in which Toda-Yamamoto causality approach is used comprises the period from 1990 to 2008. Result of the analysis shows that export of manufacturing industry and GDP is dependent on import of intermediate goods and investment goods.