Abstract:

In the foreign trade practices of developed and developing countries, free trade policies and protective policies are constantly discussed. Both policies have their own advantages and disadvantages. But in today’s global world, the effectiveness of protective policies is increasingly weakening. In the study, the comparison of these two policies is carried out through econometric tests through economic growth and external trade variables. In the analyses carried out, the series stands out on levels. The Engle-Granger equalization test did not find a long-term relationship between the variables. But in the Maki matching test it was found that there was a matching relationship with structural breakdowns. The Granger causality test and the Hacker and Hatemi-J causality test results also identified the one-way causality relationship from national income to import.