IDEAS home Printed from
   My bibliography  Save this paper

Capital Flows and the External Financing of Turkey's Imports (Special Series on Mixed Credits, in Collaboration with ICEPS)


  • Ziya Önis
  • Süleyman Özmucur


Subsidized capital flows have made a major contribution to the recovery of the Turkish economy from the acute balance of payments crisis of the late 1970s. The inflow of foreign capital on a substantial scale has facilitated rapid growth in imports of essential raw materials and investment goods which, in turn, has been instrumental in sustaining a comparatively high rate of economic growth.A balanced account, however, needs to take into consideration the negative side effects associated with subsidized credits. Subsidized capital inflows have resulted in overborrowing and consequently in overexpansion of the public sector, particularly during the post-1984 phase. A structural disequilibrium has developed, in the sense that the majority of medium- and long-term capital inflows has been directed to the public sector, and within the public sector, primarily to infrastructure projects. The private sector has been able to borrow mainly on a short-term basis, to satisfy working ... Les flux de capitaux subventionnés ont puissamment contribué à la restauration de l'économie turque confrontée à une crise aiguë de la balance des paiements à la fin des années 70. L'afflux, à grande échelle, de capitaux étrangers a concouru à la croissance accélérée des importations de matières premières essentielles et de biens d'investissements qui, à leur tour, ont été à la base d'un taux de croissance économique relativement élevé.Un bilan équilibré implique cependant la prise en considération des effets négatifs de ces crédits bonifiés. Les flux de capitaux subventionnés ont donné lieu à un surendettement et à une expansion excessive du secteur public, en particulier après 1984. Un déséquilibre structurel s'est alors développé, la majorité des importations de capitaux à long et à moyen termes bénéficiant au secteur public et, au sein de ce secteur, prioritairement aux projets d'infrastructures. Quant au secteur privé, il a emprunté surtout à court terme pour s'assurer ...

Suggested Citation

  • Ziya Önis & Süleyman Özmucur, 1991. "Capital Flows and the External Financing of Turkey's Imports (Special Series on Mixed Credits, in Collaboration with ICEPS)," OECD Development Centre Working Papers 36, OECD Publishing.
  • Handle: RePEc:oec:devaaa:36-en

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:devaaa:36-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.