Impact of High Technology Export on Economic Growth: An Analysis on Turkey

Abstract

High-technology exports, with their high added value, are considered as one of the determinants of growth in recent years. The increasing competitiveness of developing countries in international markets depends on the country's capacity to produce and export high-tech products. Therefore, the export of high technology products is especially important for the economic growth and development of the countries. After 1980, Turkey has transitioned from import substitution to export-oriented industrialization strategies and largely completed the liberalization process during 1990s. Important policies for industrialization have been implemented by improving the export structure within the scope of competitive advantages. In this study the effects of the causality analysis on the economic growth of high-tech exports in Turkey has been investigated. Granger Causality Analysis was used to determine the direction of the relationship and the results of the variance decomposition were evaluated. In conclusion, it was found out that high technology exports affect economic growth.