Abstract:

Purpose - The adverse circumstances which have been experienced in Turkey’s economy recently are attributed to different justifications. One of these is the case defined as ‘Dutch Disease’ in literature. Dutch disease is an economic term for the negative consequences that can arise from a spike in the value of a nation’s currency. Within this context, it has been desired to test the validity of ‘Dutch Disease’ in Turkey’s economy for the 2002-2018 period. The case that there is no research which is put forward recently or made with a similar method makes the study different from the others. Methodology - In the study, it is used the annual data belonging to the variables of Consumer Price Inflation (CPI) and Imports between the years 2003-2018. Empirical analysis has been executed by using SPSS (22) Pearson’s Test technique and Regression Analysis. Findings- According to the obtained findings, contrary to what is alleged, there is no connection of the adverse circumstances which have been experienced in Turkey’s economy recently to ‘Dutch Disease’. Conclusion- For the Dutch Disease to be able to occur, the currency used as medium of exchange is required to be convertible. Because the national currencies of the developing countries such as Turkey are not convertible, the national currency appreciates only within the boundaries of the country. The decrease of the production in Turkey is associated with imports not becoming cheaper but on the contrary becoming more expensive.

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