Title: The Importance of Export Market Diversification Strategy on the Overcoming Economic Crises: The Case of Turkey
Abstract: Today, importance of export is increasing at providing and sustaining
growth in developing countries. Because of their macro-economic
instability and fragility developing countries face to crisis and affected by
global economic crisis more than developed countries. At the end of 2007
in USA, problems in returning long-term housing loans created mortgage
crisis in financial markets. Crisis spread to all of the markets and return to
economic crisis.
Leaping of crisis to developed countries which are economically locomotive
of global economy caused crisis spreading and deeping world-wide. The
average growth rate of global economy was 5% before the crisis. This rate
declined to 3% after crisis (IMF). The crisis affected developing countries by
exports. The economic crisis deeply existing in EU countries which are
traditionally Turkey Republic’s markets decreasing the share of Turkey to
EU exports in the total amount of Turkey exports. The share of Turkey-EU
exports was 55% of Turkey’s total export before the global crisis from 1997
to 2008. After the crisis this figure declined 23% in 2009 when the crisis
effect was deepest (DTM).
Expectation of the effects of the economic crisis will continue, especially in
the EU countries resulted Turkey implementing market diversification
strategy in foreign trade. In accordance with the strategy; Turkey
performed a group of activities and invested (liaison offices, trade shows,
incentives) to rise export focused group of countries especially North Africa
and the Near and Middle East country groups. This paper extends to Turkey’s total export amount to different country
groups and rates from 1997 to 2008 accepted as the pre-crisis and from
2010 to 2012 post-crisis period. According to this research the share of
Turkey-EU export decreased 11% and became 44%. After implementing
market diversification strategy Turkey-MENA export rate increased 10%
and became from 13% to 23% (TUIK).
We found that the Turkey’s market diversification strategies succeed and
Turkey’s export volume increased. Because of reason Turkey is the one of
the countries least affected by global economic crisis and recent global
economic uncertainty and recovering the economy fast. Economy of
Turkey is the fastest growing economy in Europe. The average growing rate
of Turkish Economy is 5,4% from 2002 to 2011. Turkey's economy
expanded 8.5% in 2011 (TUIK).
The aim of this study is to show negative effects of economic crisis on
growth of economy by the channel of export and to test alternative export
policies (market diversification strategy) on recovering crisis.
Keywords: Economic Crises, Export, Economic Growth, Market Turkey
Economy, Diversification.
Publication Year: 2013
Publication Date: 2013-05-10
Language: en
Type: article
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Cited By Count: 1
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