ABSTRACT
The main trends in Turkey's foreign trade since 1960 can be seen from the balance of payments figures. Since the 1930s foreign trade has been subject to extensive government intervention through a policy of officially pegged exchange rates, a high protective tariff and strict import quotas. The geographical distribution of Turkey's foreign trade has also altered over the past twenty years. The 1970 devaluation nevertheless ushered in a period of strong export growth, caused by improving terms of trade as well as a more realistic exchange rate. In spite of the government's spasmodic efforts to increase exports and domestic capital accumulation, it is virtually axiomatic that Turkey needs a substantial inflow of foreign aid to maintain economic growth. On the imports side, the proportion accounted for by investment goods and industrial raw materials has risen fairly steadily since the early 1960s, while that of consumer goods has fallen to an insignificant 3.5 per cent of total recorded imports.
