Turkey's economic development

I am currently studying for a master's degree in finance at Chongqing University, and I have translated a paper on the changes in Turkey's exchange rate system, so I have a certain understanding of Turkey's economic development. First of all, the macro level, to 2012, Turkey's per capita GDP according to the exchange rate to 10,457 U.S. dollars (Purchasing Power Parity (PPP) may be slightly lower than this), basically considered a middle-income countries, but has not stepped into the ranks of the developed countries, since 2000, Turkey's average annual GDP growth rate of 7%, Turkey's per capita GDP in 2000, has been increased by three times (the exchange rate) Turkey's GDP per capita has tripled since 2000 (in nominal terms before exchange rate factors). Turkey's economic development method has changed a lot around the 1980s. Since the Kemal Revolution in the 1920s, Turkey has been adhering to the import-substitution industrialization development method, i.e., exporting primary products and raw materials and importing advanced equipment from abroad to develop the domestic industry and then using trade barriers to protect the "domestic na?ve industry". Turkey's import-substitution industrialization has not been successful for two reasons: 1. Turkey's lack of internationally competitive primary products has prevented it from obtaining sufficient foreign exchange revenues for the introduction of modern industrial facilities. In contrast, Iran's import-substitution industrialization in the 1950-1979 Pahlavi era, which relied on oil exports, was much more successful; 2. Turkey was unable to cultivate competitive domestic firms after the introduction of modern industrial infrastructure, and the rest of the manufacturing industry, except for the steel industry, construction, and other infrastructure-related industries, lacked competitiveness, while trade barriers and the fixed exchange rate system made the economy inefficiently run. In the 1970s, Turkey's foreign exchange reserves shrunk dramatically due to the collapse of the Bretton Woods system and the oil crisis, and the fixed-exchange-rate system became unsustainable, resulting in severe stagflation, high unemployment, and high fiscal deficits.

Since 1980, to overcome the crisis, Turkey began economic liberalization reforms. On January 24, 1980, the Turkish government announced an economic stabilization and reform plan, which involved trade and financial liberalization. The main objective of trade and financial liberalization was to promote the development of financial markets while attempting to introduce a more liberalized trade regime characterized by a floating exchange rate in line with a development strategy based on export-led development. The introduction of an actively managed floating exchange rate mechanism was an important step in the implementation of this reform programme in the early 1980s and has remained central to the trade liberalization project. International capital flows and foreign exchange, which were tightly regulated before 1980, became fully liberalized after the reforms, while the Turkish lira became fully convertible in 1989. On the other hand, Turkey privatized state-owned enterprises, relaxed the threshold for foreign investment, and actively supported the development of new service industries such as tourism. To 2000 Erdogan came to power, Turkey to further accelerate the pace of financial liberalization, Erdogan to promote "neo-liberal" economic policy in the past 12 years in the data to see the success.

Turkey's level of economic development and economic development in the emerging economies of the current situation is relatively good, the investment environment is better, but Turkey's economic development approach to the existence of structural problems. 1. Turkey since the reform in 1980, the domestic industry is heavily dependent on international capital inflows and foreign investment, and foreign investment in a large number of entry and withdrawal for the Turkish economy has brought great instability, in January 1994 and February 2001 because of the short-term foreign capital flight caused by a large number of financial crises so that the two times had to give up the floating exchange rate system and to the IMF to ask for help, and in addition to excessive foreign capital inflows and domestic real economy financing, the Turkish economy has a lot of structural problems. In addition, excessive foreign capital inflows and the domestic real economy's financing needs do not match often lead to imported inflation. 2. Turkey since the reform in 1980, vigorously develop the tourism industry and related industries as the representative of the modern service industry, while the domestic manufacturing industry is lagging behind the development of a large number of manufactured goods in Turkey need to be imported, so Turkey's domestic inflation level by the exchange rate impact, and at the same time, due to the manufacturing industry lagging behind the development of the economy can not absorb enough employment, so although the total economy is growing rapidly, but the problem of unemployment has not been well resolved. Get a good solution, not long ago nationwide protests against Erdogan, high unemployment is also an important reason. (Middle East, North Africa countries, including Greece, Ireland and other countries in Europe are facing similar problems) 3. Turkey in recent years, the domestic political situation has increased, the Islamic extremist forces in power (now Erdogan and his ruling party), does not rule out the involvement of Turkey in the Middle East region of the unrest, the future of Turkey's economic development of the environment there is a great deal of variability.

I hope to help you 。。。。。。