Abstract:

The increasing phenomenon of globalization with the intense participation of developing countries after the 1980s has also significantly increased financial mobility alongside the flow of goods. This phenomenon, called financial liberalization, has led to intense controversy on the impact of capital movements on the country’s economic growth in the new process in which cross-market borders begin to disappear. These discussions apply to Turkey. Therefore, the impact of financial and commercial external transparency on the Turkish economy was studied by an econometric analysis. The study used the three-month real GDP growth rate, financial and commercial external transparency rate variables for the period 1998-2017. According to the analysis, if the trade outlook increases by 1%, the growth decreases by 0.69%, while if the financial outlook increases by 1%, the growth increases by 0.58%. Furthermore, one-way causal relationship from external financial gap to GDP has been identified. The trade outward and the financial outward need to be clear, but there has not been any causal relationship between GDP. The findings obtained without the study are supposed to support the views of the Neo-Classic Economic Ecole in terms of financial liberalization and economic growth.

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