Abstract:

Classical and Neo-Classical Economic theories argue that economic growth will increase as economies open to the outside world. In addition, with free foreign trade, the division of labor and specialization between countries will increase. It is alleged that in this way, the production and therefore the welfare of the countries will increase. Throughout the history of humanity, countries have created roads such as Silk Road and Spice Road in order to be able to trade both within themselves and internationally. Today, with the increase in technological elements such as transportation and communication, globalization has increased and many countries have begun to reduce tariffs and / or quotas that prevent trade. With the liberalization of foreign trade, economies have had the opportunity to reach larger markets. Thus, advances in technology and efficiency have occurred in developing economies. Along with these advances, there have also been increases in growth rates in these economies. In this context, income, consumption, welfare level, income distribution and therefore poverty of individuals have been directly affected in open economies. The aim of this study is to reveal the relationship between foreign trade, economic growth and poverty in the Central Asian Turkic Republics. Data from Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan were used in the study. The data used in the study covers the period 1990-2022. In the study, panel data analysis was used to analyze the relationship between countries' foreign trade, economic growth and poverty. According to the Panel Granger causality test results; There is one-way causality from per capita income to real consumption. A unidirectional causality relationship was found from real consumption to openness, from foreign direct investments to real consumption, and from per capita income to openness. Additionally, there is a bidirectional causality relationship between foreign direct investments and per capita income.

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