Economic Growth and Foreign Trade: A Causality Relationship for Turkey

Foreign trade signifies the commencement of economic globalization and it dates back to the post industrial revolution era. Although several fluctuations were observed among different economic periods, it never lost its importance. It is seen that both the classical economic growth models and endogenous growth model theories starting from the 1980 stress its importance. While foreign trade is a component of the economic structure that maintains increase of foreign currency, it is also the driving force of economic growth with respect to providing human capital, foreign direct investment and technology transfer in developing countries. The purpose of the study is to examine the relationship among imports, exports and economic growth from 1998 to 2015 in Turkish Economy.