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The Impact of Turkey's Internal Economic Situation in 2000s on Its Foreign Economic Relations
Abstract
Turkey is an important country both in terms of population and geographical location. In terms of population, Turkey is the second largest country in Europe after Germany. Geographically, Turkey serves as a bridge between Europe and Asia. This features enables Turkey to develop economic relations with a lot of countries and regions. However, Turkey has experienced negative results in the field of economics as in many areas because of political uncertainty and government structure based on coalition and could not make full use of its potential for many years. After living one of the worst economic crisis in history in the 2001 year, the people in Turkey has decided to a government of one party than government based on coalitions. With the political stability, Turkey became a center of attraction in direct foreign investment and portfolio investment for both countries in the region and developed countries. Despite these positive developments, the greatest difficulty encountered in the economy in this period is the current account deficit problem.
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