With non-functioning of the national development thesis through the late 1970s
and the collapse of the Eastern Block at the end of 1980s it was again started to
argue that openness was necessary for the national economies. In this context
some economists expressed that having a certain development level was a
precondition for openness policies in order to support the growth while operating
the growth models based on openness and export. (Han and Kaya, 2006: 245; Sun
and Parikh, 2001: 187-188). There are classical economists on the basis of the view
that capital movement liberalization and openness will increase the economic
growth and welfare after 1980s. According to Classical and Neoclassical
economists, foreign trade makes important contributions to the development and
the foreign trade is not only an effective productivity instrument but also it is the
engine of the growth. Since the sources are limited in developing countries, the
production on the scale of a high and sustainable growth cannot be performed and
new sources can be needed for production. With the openness, domestic markets
will encounter with the competition, the domestic industries which cannot
compete with international prices will transfer their production factor to the other
productive factors and the welfare increase will happen as a result of more
effective allocation of the sources. So, for this type of economies it will be useful to
make production under free trade. The precondition of providing growth under
free trade is to apply a foreign trade policy which the national economies may
combine with the international structure and to direct the allocation of the sources
for production to the sectors determined by the international demand. The natural
aim of this type of economy is the industrialization and the availability of the
growth and it is suggested that the required dynamism for this will be realized by a
structuring coming from external demand rather than domestic demand (Celebi,
1991: 33).