This paper, hypothesized by endogenous growth models, investigates if there is any relationship between foreign trade policy as a proxy of openness, or import of investment goods and growth in Turkey after 1980. According to the empirical study that employs standart VAR and VEC models, it is concluded that there is a significant impact of import of investment goods as a proxy of openness in the long run growth of GDP. As a resul! of us ing the imported investment goods, assumed to embody new technologies created in developed countries, into the production process leads to an increase in productivity and contribute to growth ofGDP in the long run.
Article Language: Turkish English