Abstract:

The enhanced liberalization of foreign trade and capital account in World level accelerated the integration process of economies at international level. The basic assumption of free trade is that developing countries supposed to be effected at positive direction with the emerging of larger market possibilities. In which direction Turkish industrial sector’ development and economic growth responded to the export-led industrialization and free trade policies implemented since early 1980s. Even Turkish manufacturing sector’s competitiveness effected favourable when it had arrived the years of 1990s. However, Once have a look to capital structure of the sector it has seen a decreasing equity capital ratio. As a consequence of that the investment and export of advanced technology products in the sector has affected at negative direction. Despite the realization of liberalization foreign direct investment had been far behind the expected level, the outcomes of integration with the global economy going on its own way after the implementation of customs union with E.U.

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