RELATIONSHIP BETWEEN EXPORT DIVERSIFICATION AND ECONOMIC GROWTH: THE CASE OF TURKEY

Abstract

The sources of economic growth and how to ensure long term economic growth is the main problem of the economics. The role of foreign trade on economic growth is a subject that is examined in this context. Therefore, economic growth based on exports has become one of the main targets of the countries. Providing export-based economic growth depends on stable export structure. The maintenance and sustainability of export stability depend on product and market diversification. Because countries which limited exports or market dependence on exports are undefended to price changes and external shocks. Goods and market diversification is crucial in order to avoid such risks and to have a stronger export structure. The aim of this study is investigation the relationship between level of product diversification in Turkey's exports and economic growth. As a result, it has been found that the level of export diversification (reduction of the concentration coefficient) in Turkey has a positive effect on exports and economic growth.