Author Description

Since the introduction of the stabilization program in Turkey in January 1980, export growth has occupied a crucial role in Turkey's development strategy. This represented a major departure from the hitherto followed inward-looking strategy of import substitution. In the changed environment the success on the export front became a sine qua non for the success of the new policy as a whole. The Government, which centralized the administration of export incentives and increased their importance, gave strong indications that it would follow through with this policy. Turkish exports responded strongly: in the period 1980-84 they increased from $2.9 billion to $7.1 billion. Increased export incentives were instrumental in stimulating export growth. These incentives included continuous depreciation of the exchange rate, payment of tax rebates, access to subsidized export credits, and duty-free imports of necessary inputs for exports.