The Relationship between Trade Openness and Inflation in Turkey

• Main Author: Rana Atabay
• Format: Article
• Language: English
• Published: Ümit Hacıoğlu 2016-04-01
• Series: International Journal of Research In Business and Social Science
• Subjects: Trade Openness, Inflation, Turkey
• Online Access: http://ssbfnet.com/ojs/index.php/ijrbs/article/view/464

Both in Turkey and in the world in 1980 was a year of major structural transformations. Globalization has been accelerated in this time and countries have implemented some liberal policies for opening borders to foreign capital. Economies began to be led by export-oriented industrialization and liberalization policies after 1980 and these policies continue since then. Turkey is one of these countries that began liberalization after 1980. While decreasing trade barriers exerts a downward pressure on prices trade liberalization represents a structural break. In this article, I estimated the relation between inflation and trade openness and tested the negative openness versus inflation hypothesis for the years between 1980 and 2010 for Turkey by using OLS method.