Investigating the Impact of Economic Components of Globalization on Economic Development in Turkey (2001-2021)

Document Type : Original Article from Result of Thesis

Authors

1 Assistant Professor of International Relations, Allameh Tabatabae"i University.

2 MA. Student of International Relations at Allameh Tatabae University

Abstract

The end of the Cold War and the collapse of the Communist system, along with the emergence of globalization and the advancement of science and technology have brought serious changes in international system. thus, low politics and issues related to economy, trade and culture became the most concern of state and non-state actors. The spotlight of economic development which has always been a serious concern of states since the second World War has gained momentum with the emergence of economic globalization. Therefore, in the context of globalization, states have put the economic development in agenda of their issues by adopting new policies in the framework of regional and international cooperation. In this regard, this research is an attempt to address this important question as to what effect did economic globalization has on Turkey’s economic development between the years 2001-2021? This article is an attempt to examine the economic components of globalization in Turkey and also to examine economic globalization on economic development in this country. The finding of research indicates that Turkey has succeeded in raising the level of economic development by adopting various program in order to improve the indicators of economic globalization. In this research the qualitative method with an explanatory prespective has been applied to examine the cause and effect relationship between independent variable(economic globalization) and dependent variable(Turkey’s economic development).

Highlights

In post-cold war era, world has witnessed tremendous development in various fields of science and technology, which have turned the world in to a global village and globalization has overshadowed the international system as a continuous flow.  Globalization consists components such as; world compression, connecting people to each other by common interests or values among them, fading national borders, increasing interactions and strengthening ties between nations. If all of these components of this definition occur, then we will witness world as a unique phenomenon. Globalization affects the economic developments of countries therefore many statesmen have tried to adapt themselves to this trend despite having different views. It is important to point that the components of economic globalization and economic development are compatible with each other and if a country implement all of the components of economic globalization, will achieve economic development. This article is an attempt to answer this question that, what is the effect of economic globalization on Turkey's economic development between 2001-2021? To answer this question this hypothesis is proposed that Turkey by adapting its policies based on the components of economic globalization, including joining the free trade system, attracting foreign direct investment and increasing international economic interactions is providing the field of economic development. The research method of this article is qualitative with an explanatory approach and data collection method is based on document-library that uses primary and secondary sources including reports, documents, books, articles and reliable websites. Therefore, in this research, has been tried to investigate the cause and effect relationship between two variables; an independent variable ( economic globalization ) and dependent variable ( Turkey's economic development ) with an explanatory approach. The finding of the research indicates that Turkey has succeeded in realizing the economic components of globalization, in other words, this country in the field of the first component of globalization, which is  increasing economic interactions has acted successfully. Turkey's export has been examined in the research in the three period of 2004, 2012 and 2020. Based on statistical data, Turkey has high interaction with Germany, France, England, Russia, Romani, Greece, Spain and America during three different period of time. And Turkey has experienced joining the free trade system which is the second component of economic globalization, free trade system is the term that indicate the complete removal of government policies or subsidies to influence trade and appears in the form of reducing barriers to  import and export of the goods. This component consists of three important sectors, including communication with international organization, strengthening the private sector and creating free zones. In the field of interacting with international organizations, the United Nations and Turkey followed an interactive procedure and Turkey has cooperated with the United Nation. in addition, Turkey is an active member of World Trade Organization and has played an active and responsible role in 9 disputes which raised in this organization and has officially participate in 30 disputes as a beneficiary third party. Turkey is a member of G20 group, this group contains a multilateral strategic missions that includes the set of developed and emerging economies of the world. In the field of the private sector and companies it can be acknowledge that as a result of globalization of the Turkish economy, many reforms occur in the laws, according to which, the importance of privatization has been emphasized, which in turn can be a platform for attracting foreign direct investment and achieving economic development.  In addition, small and medium-sized enterprises are also important because small enterprises with advantages such as the using small capital and helping innovation, can play an effective role in increasing employment and economic development of countries. in Turkey small business play an effective role in economic and political fields. The Turkish government has established centers to encourage collaboration between small business and universities. In the field of free zones it can be stated that free zones are considered one of the centers of economic development of countries which have always attracted the attention of governments in the current era of international relations. A free zone is an area within the political borders of the country that is not limited by legal restrictions, especially customs regulations. These areas are often called " free production zones" or " export development zones" . free zones in developing countries are effective business center which can provide a favorable platform to benefit more effectively from international trade and investment facilities. one of the most important function of free trade zones in Turkey is to create employment, where 15000 people work, for this reason free zones in Turkey have a high commercial potential. Several free zones have been created in Turkey since 1987 as follows; free zone of Mersin, Antalya, Trabzon, Mardin, Samson, Rabz, Yumortalik, Adana, … . in the context of third component of economic globalization that is absorption of foreign direct investment, it can be acknowledge that Turkey has always focus on absorbing foreign direct investment, and in addition to attracting foreign direct investment this country has also considered as one of the foreign investors in other countries. According to Ricardo's theory which consider the concept of development with an economic and quantitative perspective, one the most important dimensions of economic development is the prosperity of foreign trade, which includes the adoption of open economy policies, increasing international economic interactions and attracting foreign direct investment. So the components of economic developments and economic globalization is compatible with each other. As mentioned in the explanation of the above topics, the Turkish government has been acted successfully in the economic components of globalization so it can be acknowledge that Turkish economy has achieved economic development. The result of the research indicates that despite all of the problems which have plagued Turkey due to Corona pandemic, this country has been able to realize the components of economic globalization step by step. due to the adaption of the components of economic globalization and economic development, it can be pointed that Turkey has achieved economic development.

Keywords

Main Subjects

References

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International Studies Journal (ISJ)
Volume 19, Issue 3 - Serial Number 75
January 2023
Pages 103-125

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