The Evolution of Turkey’s Trade Policies: Competitiveness and Reform Processes in a Changing Global Environment

Abstract

This study analyzes the Republic of Türkiye's century-long development drive and trade policies together with the concept of competitiveness. The aim of the study is to analyze how competitiveness has evolved over the century. In line with this objective, political and economic developments are evaluated simultaneously and important turning points in the historical process are identified. A political economy perspective has been adopted as a useful method in this respect. The transformation of Türkiye through internal and external dynamics has been photographed. From 1923 to 2024, the results of statist policies, liberal policies, planned economy, mixed economy, and neoliberal policy experiences are discussed. Theoretical and empirical definitions of the concept of competitiveness and policy change to increase Türkiye's competitive performance through the indicators are analyzed. In light of the data, it is determined that there was no significant improvement in Türkiye's competitiveness until 1980, while a more rapid development was observed after 1980. After 1980, it can be said that Türkiye has risen to a competitive position especially in textiles, food, chemical products, motor vehicles, basic metal products and machinery industry among export products. It has been emphasized that after the year 2024, Türkiye should shape its long-term plans with measures that support its competitiveness.