Influences of Decree No. 32 on capital movements in Turkey: A theoretical analysis

摘要

Based on findings of theoretical and empirical studies in the literature, it is more likely that financial liberalization is a means of enhancing capital mobility rather than being an objective. The main purpose here is to make use of foreign savings to fund the country’s development. Considering foreign financial sources that enter the country in the form of foreign debt and capital, it is apparent that the foreign capital option is the preferred approach. The financial liberalization process was initiated by the deregulation of interest rates and it has been supplemented by numerous legal and corporate regulations. The process was finalized when the council of ministers passed Resolution No. 32, which ensured the integration of local markets with the foreign market and deregulated the movement of capital. This analysis is focused on the influences of Decree No. 32 on the movement of capital.