Macroeconomic Effects of Openness

Liberalization policies began to be implemented around the world after 1980, and countries’ economies were rapidly affected by these policies. Consequently the concept of openness became increasingly important in terms of the countries’ economies. Hence, the openness that provides important information on the integration of countries into the world, is the subject of many macroeconomic changes within those countries. In this study, firstly, the concept of openness is explained, and a conceptual framework is presented. Secondly, it attempts to explain theoretically the effects of openness on economic growth, inflation, unemployment, real exchange rate, external debt, and productivity