ABSTRACT
Turkey experienced a major export boom following the introduction of the structural adjustment programme of 1980, which entailed a decisive policy switch from protectionist import substitution policies to trade liberalization and export orientation. The value of exports increased from $2.26 billion in 1979 to $12.96 billion in 1990, rising to almost $31 billion in 2001. The composition of exports also underwent a major change, shifting away from heavy concentration in agricultural and livestock products and towards manufactured goods, principally textiles and garments, iron and steel, and food-processing products (Sayan and Demir 2003). Yet, this initial phase of diversification signalled only a change in the commodity composition of Turkish exports, rather than marking a transformation in its market concentration. Textiles and clothing, for example, significantly increased their shares in total exports, reaching about 44 per cent after 1989 (Erlat 1993). Similarly, despite a visible increase in the number of export destinations after 1980, a greater portion of Turkish exports continued to be shipped to relatively few markets, particularly the European Union (EU).1
