THE REQUIREMENTS OF FOREIGN BORROWING AND TWO-GAP THEORY: A CASE OF TURKEY

Yıl 1997, Cilt: 15 Sayı: 2 , 1 - 32 , 31.12.1997

Ömer Eroğlu Stephen Heycoock

https://izlik.org/JA48RR54SS

Öz

This
study has examined empirically the need 
of foreign borrowing. and foreign debt burfien
of Turkey from 1963 to 1995. The two-gap analysis was used to assess the requirements of foreign resources
as additional to domestic resources in order to achieve e a reasonable
target
ground rate of national income. This study
has shown  that in the light of two-gap analvsis, foreign
aid will still continue to plan a crucial role during the Seventh Five Year Plan period (1996-2000) bv helping to overcome
foreign exchange constraints, although it has put Turkev under a large foreign
indebtedness. However, as long as the economy
keeps its ability to repav foreign debt, it is
beneficial for the economic development of Turkey.

Anahtar Kelimeler

Economy , foreign Aid , Foreign Debt , Two-Gap Analysis , Foreign Exchangeange Coııstraints

Kaynakça

• Celasun, M. and D. Rodrik 81989), "Turkish Experience with Dept: Macroeconomic Policy and Performance", in Devloloping Country Debt and the World Economy, ed. by J.D. Sachs, National Bureau of Economic Research, The University of Chicago Press, London