The Relations between Foreign Trade and Income Inequality: Turkey 1980-2014

Abstract

In the world, it is seen that foreign trade is the most important factor together with free capital flow in open economic order. Along with the development of foreign trade, many parameters in the domestic economic order of nations have interacted. The measurement of the open economic order, the indices for determining the level and the changes in the parameters which are used, is gaining importance in terms of being able to produce macro level policies on a national basis. In the study, the indices used for foreign trade were determined, and an econometric analysis was carried out to show the changes in the related indices in terms of income distribution. The analyzes revealed that the Kuznets curriculum was not correct after the 2001 crisis. Foreign trade volume is also supported by this data.