The Future of Export-Based Growth Policies in the Turkish Economy: An Econometric Simulation Approach

The failure of the import substitution industrialization policies implemented in the Turkish economy between 1960 and 1980 led to the adopting of export-oriented policies for economic growth. In 1980, radical transformations were experienced in economic policies. Since 1980, exports have been attributed important meanings for sustainable economic growth. Therefore, this study analyzes the long-run and short-run relationship between exports and economic growth in the Turkish economy by using the ARDL bounds test approach with annual data sets for the period 1987-2021 and forecasts Turkey's GDP per capita for the period 2022-2032 by econometric simulation method. The ARDL model estimation results show that exports have a statistically significant and positive effect on economic growth in the short and long run. According to the forecast analysis, it has been determined that the per capita GDP in 2032 will be $20990 in the base export scenario, $17327 in the low-export scenario, and nearly double to $25157 in the high-export scenario. These results show that it is possible for the GDP per capita to nearly double in the next ten years in the Turkish economy. Still, policy components are needed to increase exports by an average of 13.86% annually to reach these figures.