The relationship between trade, growth and the balance-of-payments
(BOP) has been a subject of considerable interest and empirical
scrutiny in growth and development economics. This study addresses
the following question: 'How did trade liberalization affect the
BOP and growth of the Turkish economy over the period 1960-2004?',
a question that has become even more crucial after the financial
crises in the 1990s and early 2000s. The issue has been
investigated through a case study of Turkey from 1960 to 2004 with
the application of first- and second-generation balance of
payments-constrained growth (BPCG) models developed by Keynesian
economists. The study is of interest to academics, policy makers
and professionals in the fields of economic growth and development,
and international trade. In addition, analysts of balance of
payments who may be interested in developing countries' economies
under financial liberalization would benefit from the work at hand.
Needless to say, it is invaluable to students of the issue.
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