Foreign Trade Deficit Research Articles

Küreselleşme sonrası Türkiye’de dış ticaret açığının reel efektif döviz kuru ve dış ticaret hadleriyle modellenmesi: NARDL yaklaşımı

Fluctuations in the real effective exchange rate and changes in the terms of trade can cause predictable or unpredictable changes in the overall economy. The most important consequences of these fluctuations and changes are the effects of regional or global economic crises on macroeconomic variables (employment, unemployment, inflation, GDP, balance of payments, foreign trade deficit). Anticipating the consequences of the dynamic effects of these changes is crucial for policymakers. This study analyzes the effects of changes in CPI-based real effective exchange rates and terms of trade on the trade deficit in 1994-2022. Since the impact of CPI-based real effective exchange rate and terms of trade changes on the trade deficit is likely to be asymmetric, the Nonlinear Auto Regressive Distributed Lag (NARDL) method is used in this study, and it is concluded that the factor that affects the trade deficit the most is the decline in the terms of trade. One of the most important reasons why the foreign trade deficit does not decrease at the desired level, even in periods of depreciation of the TL, is the decline in the country’s terms of trade.

Trend analysis of cotton production and trade

The aim of this study is to analyse the cultivation areas, production amounts and foreign trade data of cotton plant in the world and Turkey from an economic point of view. The data on Turkey's cotton cultivation area, cotton production and fiber cotton import and export data for the 20-year period 2003-2022 were obtained from the Food Agricultural Organization (FAO). The data set was transferred to MS Excel spreadsheets and the trend analysis technique was used in MS Excel programme to obtain the trends in cotton cultivation area, cotton production amount and near future forecast values for eight years between 2023-2030. In addition, for the foreign trade balance data obtained from fiber cotton import and export data for the period 2000-2022, the change trends of the 23-year period and the eight-year near future forecast values between 2023-2030 were calculated. Cotton cultivation area has a decreasing trend between 2023-2030. While the forecast value of cotton cultivation area for 2023 is 417 thousand hectares, this value is predicted to decrease to 373 thousand 722 hectares in 2030. The trend in the amount of cotton production has a decreasing trend after 2022 and it is predicted that there will be no break in the amount of production between 2023-2030. The estimated foreign trade deficit in fiber cotton for 2023 is 964,516 tonnes and for 2030 is 1,106,672 tonnes. The main reasons for the decrease in cotton cultivation areas are the increases in input prices such as fertilisers, pesticides and seeds. In order to eliminate the foreign trade deficit in cotton, studies should be carried out to enter new markets and increase the share in existing markets. In addition, it should be aimed to create a sustainable cotton sector by investing in R&D activities and entering new markets.

Export opportunities for Turkey in China under the Belt and Road Initiative: application of a decision support model approach

Turkey's foreign trade deficit with China has rapidly increased since the 2000s. To reduce the foreign trade deficit with China, Turkey needs to identify and diversify potential commodities to export to China with higher competitiveness. In this aspect, this study identifies potential export opportunities for Turkey in China among the Belt and Road Initiative China-Central Asia-West Asia economic corridor countries to increase Turkey's total export volume and diversification in China. The decision support model with some crucial modifications in accordance with regional practices is implemented to pick the export commodities with the highest export potential value. The results of the modified decision support model indicate that Turkey can have export potential, mostly in textiles, metals, machinery/electrical, and miscellaneous. The export promotion strategies for increasing export diversification and volume in China are recommended for Turkey’s future export strategy.

Ekonomik Entegrasyon Anlaşmalarının Türkiye'nin Yüksek Teknolojili Ürün İhracatına Etkisi: ASEAN Örneği

It is seen that there have been great changes in the economic system and understanding in the phase from the settlement of humanity to the present day. The adventure of finding the technique of survival has been the key for states to dominate each other and become developed countries centuries later. Especially after World War II, there has been an increase in efforts to establish economic integration and to apply technology to industry in various parts of the world, especially in Europe. When this situation is evaluated in terms of Turkey, the fact that its exports of high-tech products, which is one of the indicators of development, is stuck between 2% and 4% and that it has a foreign trade deficit among the economic integrations of which it is a member, reveals that the understanding of establishing economic integration needs to change. Therefore, in this study, the impact of economic integration agreements between Turkey and ASEAN, the world's fifth largest economy, on Turkey's exports of high-tech products is analyzed with a panel gravity model covering the years 2007-2020 in line with the purpose of the study. As a result of the study, it is found that economic integration agreements with ASEAN positively affect Turkey's exports of high-tech products.

Status of the economy and key challenges faced by the healthcare sector in Sri Lanka

Ceylon College of Physicians (CCP) chose the theme of ‘Holistic care amidst constraints’ for the Annual Academic Sessions 2023. As the Chief Guest, I was invited to present an independent economist’s perspective on the current status of the economy and to share some thoughts on two key challenges currently faced by the healthcare sector in Sri Lanka, namely the brain drain and the funding of healthcare. The first part of this paper sets out the key contributory factors that caused the current economic crisis and the policy measures taken at present to reverse these to stimulate a sustainable economic recovery. The success of these reforms so far based on key economic indicators such as exchange rate, interest rates, inflation, GDP growth, foreign exchange reserves, government revenue, trade deficit, worker remittances and tourism earnings, are examined thereafter. Areas of concern which require attention to ensure sustainability of the process and to ensure that nobody is left behind, are highlighted.Causes and remedies of brain drain are discussed, looking beyond those which look obvious but are currently unfeasible due to the state of the economy. The pace of emigration needs to be slowed while adapting to the challenges posed by this inevitable phenomenon and learning to live with it. Regarding funding of healthcare, issues faced by the current two-tiered system in Sri Lanka are examined, particularly the high level of out-of-pocket spending.Different models adopted by countries such as the UK, Canada, France, Germany, Japan, and the USA are looked at. A model for Sri Lanka to consider adopting is proposed to help reach the goal of Universal Health Coverage and an attempt is made to chart a path to fulfil this vision.

Türkiye’de Döviz Kuru, İhracat ve İthalat İlişkileri: Dalgalı Döviz Kuru Rejimi̇ Beklentileri̇ Karşılıyor mu?

Türkiye has implemented different exchange rate regimes and foreign trade policies throughout its 100-year history. The foreign trade deficit has been a persistent issue since the establishment of the free-market economy and its opening to foreign capital and aid. Since 1980, export-oriented industrialization policies and the withdrawal of the fixed exchange rate regime have not effectively reduced the foreign trade deficit. This study used the VAR model to examine the relationship between the real effective exchange rate, exports, and imports from March 2001 to June 2023. To investigate the causality between variables, Granger causality test is performed; impulse response functions are used to establish the direction of the variables' reaction to shocks; and variance decomposition is used to evaluate the distribution of impact over periods. The study's findings contradict economic theory's predictions about exchange rate, export, and import linkages. The Granger causality test failed to identify a causal relationship between the real effective exchange rate and exports and imports, leading to the conclusion that the level of the exchange rate has no influence on exports and imports. The bidirectional causation between exports and imports, with import changes largely explained by exports, confirms Türkiye's export dependence on imports

Predicting The Share of Tourism Revenues In Total Exports

Tourism revenues are a significant source of income under the current account service item of countries. These revenues are not included in exports, despite being compared with the export revenues of the countries and in economics the ratio of tourism revenues to export revenues is used as an indicator. In developing economies, tourism revenues play a role in closing the current account deficit. The prediction of this rate in countries with foreign trade deficit is important in developing tourism, export and import policies for the future. In this study, multiple linear regression method (MLR), one of the traditional methods, and the artificial neural network method (ANN), one of the machine learning methods were used to estimate the rate of tourism revenues of the sample country Turkey to its export revenues. In the model of the study covering 2004-2020 period, the number of tourists received, total income from tourism, average expenditure by tourists per capita, population, total export revenue, growth rate, Euro/TL and US Dollar/TL rates were chosen as independent variables. As a result of the study, the R2 value was found to be 91.7% for ANN and 90.8% for MLR which were very close to the ideal value. According to the predicts made on the model developed based on this, the rate of Turkey's tourism income to total export income in 2025 is estimated as 31.83% according to ANN; 32.73% according to MLR while in 2030, it is estimated to be 33.25% according to ANN and 36.78% according to MLR.

Econometric analysis of foreign trade and economic growth relationship in Azerbaijan and Italy

The aim of this study, unlike the studies in the literature, is to investigate whether the causal relationship between economic growth, export and import changes over time. In this study, it was analyzed whether the foreign trade of Azerbaijan and Italy had an effect on economic growth between 1992 and 2020. Granger causality and unit root test were used in the study. According to the test results, a causal relationship between growth and foreign trade has been determined for the Azerbaijan economy. However, a causal relationship between growth and foreign trade could not be determined for the Italian economy. According to the results of the analysis, the reason why such a relationship does not exist for Italy is due to the fact that growth is a factor that increases current account deficits and foreign trade deficit. In the relationship between foreign trade and economic growth, the direction and importance of the relationship may change according to the country and period. According to the Granger causality test, it has been determined that Azerbaijan's economic growth is the cause of its exports and imports with Italy with the condition of 10%. However, it has been determined that the foreign trade with Azerbaijan is not the reason for the economic growth of Italy.

The Economic and Social Dimension of Innovative Approaches in Sustainable Agricultural Policies and the Role of Municipalities

In recent years, intensive legal regulations aimed at the production of urban areas in Türkiye, the phenomenon of migration, the spread of higher education, abnormal cost increases in agricultural activities have accelerated urbanization. Parallel to the increase in the urban population, the food supply remains insufficient. The inability to increase the production of food products brings with it problems such as malnutrition, inflation, foreign trade deficit, food security. The natural areas harbored by rural and urban areas are shrinking and being destroyed by the pressure of rapid urbanization. In addition to the abandonment of rural areas, the food crisis that has arisen as a result of the intervention of the urbanization process in agricultural areas has increased the responsibility of the central government and municipalities. In order to meet the food needs of the population and implement sustainable agricultural policies, municipalities are taking different and innovative approaches. Municipalities are making direct and indirect attempts to provide people with cheap and reliable food. In this study, the activities carried out by the municipalities in Türkiye to support sustainable agriculture and their economic and social effects were examined.

Latent Comparative Advantages of Turkish Economy in China under the Belt and Road Initiative

This study identifies latent comparative advantages (LCA) of the Turkish economy in China under the Belt and Road Initiative (BRI) China-Central West Asia economic corridor. The LCA of Turkey is anticipated to increase the export volume of Turkey in China, resulting in a decline in Turkey’s foreign trade deficit with China. The growth identification and facilitation framework proposed by new structural economics is implemented with crucial modifications, including PRODY and EXPY calculations and comparisons of EXPY and some product space indicators, to pick the LCA of Turkey in China. Benchmark countries are chosen from BRI's China-Central West Asia economic corridor owing to their similar transportation routes and infrastructure investment by China and themselves. Comparing the Turkish economy to its benchmark countries regarding export diversification reveals that Turkey exhibits LCA in several manufacturing commodities, including machinery and mechanical appliances, loudspeakers, and fire extinguishers. LCA's binding constraints, barriers, and obstacles are examined to facilitate LCA production. The policy recommendations and their instruments are suggested to ease LCA production regarding the determined LCA's binding constraints, barriers, and obstacles.

Determinants of current account balance: Evidence from Türkiye

Current account balance, which is followed by all governments and policymakers, is one of the most critical macroeconomic indicators that can affect all dynamics of a country’s general economic environment from different aspects, such as inflation, foreign exchange rates and employment. There is not any consensus on the determinative factors of the CAB-Current account balance in the literature. Actually, the fact that there isn’t any consensus on the determinative factors of the CAB can be accepted as a natural result of the different structures of each country. Most worldwide studies have focused on just sectoral or just macro indicator-based determinants. With the motivation of taking both sectoral and macroeconomic conditional effects on the current account balance, the theoretical model was set as CAB as the dependent variable and ‘inflation’, ‘foreign direct investments’, ‘export to import ratio’, ‘tourism income’, and ‘growth’ as independent variables. The reason behind choosing tourism as the only sector is the compensation power of the tourism sector on the foreign trade deficit. With the data available for all variables, the time span of this paper was 2008-2019 by using the “ARDL” bounds methodology. The findings showed that there was a long-run and statistically significant positive relationship between the CAB and all independent variables of the model where just foreign exchange appreciation has a negative effect. It is thought that the model established in our research contributes to the literature in terms of including a combination of both macro data and sectoral data on the determinants of the current balance in Turkey.

Dış Ticaret Açığı Veren Ülkelerde Döviz Kurunun Dış Ticaret Performansı Üzerindeki Etkisi

Serbest ticaretin yükselişini küreselleşmenin ve teknolojik gelişmelerin desteklemesiyle döviz kurlarının önemi giderek artmıştır. Esnek kur sistemlerinde döviz kurunun dış ticaret hacmine ve dolayısıyla toplam üretime etki etmesi beklenmektedir. Bu kapsamda ekonomi politikası uygulamalarında döviz kurunun dış ticaretle ilişkisinin anlaşılabilmesi önemlidir. Çalışmanın amacı, seçilmiş ülkelerde döviz kuru ve dış ticaret hacimleri arasındaki ilişkinin karşılaştırmalı olarak incelenmesiyle literatüre katkı sağlanmasıdır. Bu doğrultuda 2020 yılında en fazla dış ticaret açığı veren sekiz ülkenin (ABD, İngiltere, Hindistan, Fransa, Türkiye, Mısır, Filipinler ve Pakistan) reel efektif döviz kuru (REDK) ile ithalat ve ihracat hacimleri arasındaki ilişki, Ocak 2003–Ocak 2022 döneminde aylık veriler kullanılarak tahmin edilmiştir. Analize döviz kurunu temsilen REDK’nın dahil edilmesiyle dış ticarette önemli belirleyiciler olan yurtiçi fiyatlar ile ticaret yapılan ülkelerdeki fiyatlar da değerlendirilmiştir. Analiz yöntemi tercihinde ülkelerin heterojen yapıları ve seriler arasındaki yatay kesit bağımlılık dikkate alınmıştır. Serilerin özellikleriyle uyumlu olan yeni nesil ekonometrik yöntemlerin kullanıldığı analizde sırasıyla CADF ve CIPS birim kök testleri, ardından Westerlund (2008) Durbin-Hausman Eşbütünleşme Testi, devamında Pesaran’ın (2006) geliştirdiği Ortak İlişkili Etkiler (CCE) Tahmincisi ile Emirmahmutoğlu ve Köse’nin geliştirdiği (2011) Panel Nedensellik Testi uygulanmıştır. Analiz bulguları şu şekilde sıralanmıştır. Eşbütünleşme Testi sonuçlarına göre analize dahil edilen ülkelerin tamamında REDK, ithalat ve ihracat hacmi arasında eşbütünleşme ilişkisi tespit edilmiştir. Ardından modellerin uzun dönem katsayıları tahmin edilmiştir. CCE tahmin bulgularına göre ihracat hacmi uzun dönemde REDK’dan negatif, ithalat ve ihracat hacimleri ise birbirlerinden pozitif yönde etkilenmişlerdir. Panel Nedensellik Testi'nin Panel Fisher test istatistiği sonuçlarına göre, ihracat hacmi ve REDK arasında çift yönlü nedensellik ilişkisi tespit edilmiştir. REDK ile dış ticaret hacimleri arasındaki ilişkilerin kısa dönemde çift yönlü olması değişkenler arasındaki etkileşimin döngüsel olduğunu göstermiştir.

A hierarchical clustering based panel data approach: A case study of regional incentives

The main objective of this research is to propose a novel approach based on panel data analysis and hierarchical cluster analysis to investigate the determinants of foreign trade deficit and cluster provinces of Turkey. This study has two important contributions into the existing literature. First, the proposed approach uses provinces based panel data. Second, the proposed approach uses structural factors as explanatory variables. The estimates show that the number of patent, trademark, and design granted, the number of incentive documents prepared, fixed investments and employment corresponding to the energy sector and employment in agricultural sector significantly affect foreign trade deficit in provinces of Turkey. Afterward, hierarchical cluster analysis is also utilized based on the results obtained from the panel data analysis. The results of the proposed approach show that provinces of Turkey are clustered into three clusters and Istanbul is the only province forming the first cluster.

1996-2020 DÖNEMİ İÇİN GELİŞMEKTE OLAN ÜLKELERDE EKONOMİK BÜYÜME, DÖVİZ KURU VE DIŞ TİCARET İLİŞKİSİ: PANEL VERİ ANALİZİ

Gelişmekte olan birçok ülke; makroekonomik istikrarı, kalkınma ve büyümeyi sağlayabilmek için dış ticaret açıklarını finanse etmeyi amaçlamıştır. Sermaye giriş ve çıkışlarına bağlı olarak döviz kurlarında meydana gelen dalgalanmalar, dış ticareti önemli ölçüde etkilemektedir. Bu çalışmada gelişmekte olan ülkelerde döviz kuru ve ekonomik büyümenin dış ticaret üzerinde etkisi olup olmadığı ve varsa bu ilişkinin hangi yönde olduğunun belirlenmesi amaçlanmıştır. Bu açıdan, kişi başına düşen gelir ve dışa açıklık gibi ekonomik bakımdan birbirine benzer 17 gelişmekte olan ülke (Türkiye, Brezilya, Arjantin, Macaristan, Endonezya, Meksika, Çek Cumhuriyeti, Çin, Hindistan, Şili, Mısır, Polonya, Rusya, Güney Afrika, Pakistan ve Tayland, Filipinler) seçilmiştir. Söz konusu ülkelerin 1996-2020 yıllarını kapsayan verileri ele alınarak analiz edilmiştir. Çalışmada, dış ticareti, ihracat ve ithalat serisi; büyümeyi ise, GDP serisi temsil etmektedir. Çalışmada, reel efektif döviz kuru, ekonomik büyüme ve dış ticaret arasındaki ilişki panel veri yöntemi kullanılarak analiz edilmiştir.

Colonial Impacts on Water Supplies: An Historical Review of Sluice Technologies in Ancient Sri Lankan Irrigation

Abstract As a measure of reducing the foreign trade deficit and to augment the usable land for commercial plantations, nineteenth century British authorities attempted to restore the irrigation system that prevailed in Sri Lanka since the Early Historic Period. In so doing, neither the system components were subjected to any hydraulic engineering analysis nor the entire systems were studied in a holistic context. The open well structure, called bisokotuva, of the ancient sluices was interpreted as the equivalent of the modern valve pits. With this understanding, ancient sluices were restored by installing the flow control gates inside the bisokotuvas. This article argues that such understanding was not based on the actual physical remains of the ancient works but was due to the colonial precept of controlled flows of irrigated water. It also discusses similar cases in several other Asian countries and how such assertions affected the European understanding on the Asian societies.

Oil Prices Relationship with Foreign Trade Deficit: Turkey Analysis between 1999-2019

Sanayi devriminden itibaren buharlı makinelerin icadı ve üretim hattında makineleşme ile seri üretim teknikleri geliştirilmiş, daha verimli ve katma değeri yüksek ürünler imal edilmiştir. Bu bağlamda doğal kaynakları yetersiz olan ülkeler üretimde kullandıkları demirbaşların ihtiyacı olan enerjiyi dış kaynaklardan tedarik etmek zorunda kalmışlardır. Ülkemizde enerji kaynaklarının talebe oranla yetersizliği nedeni ile dışarıdan tedarikçi ülkelerden birisi olmuştur. Bu çalışmada, 1999 ile 2019 yılları arasındaki en büyük ithalat kalemlerinden biri olan petroldeki fiyat değişimlerinin ekonomideki dış ticaret açığı verilerine ilişkisi ekonometrik analiz modelleri ile incelenmiştir. Elde edilen bulgular ışığında Türkiye’de, araştırma yapılan dönemlerde meydana gelen petrol fiyatlarındaki değişimin, dış ticaret açığı üzerinde pozitif yönde etkisi bulunmaktadır.

Türkiye ve Ana Ticaret Partnerleri için J Eğrisinin Geçerliliğinin Analizi: Panel Veri Yaklaşımı Uygulaması

External trade cannot create the expected result for some countries due to their economic structures or policies. Economies could encounter severe foreign trade deficits and the risk of an economic crisis. Thus, researchers and policymakers analyse the dynamics of countries’ external trade balances. Turkey’s persistent current account deficit is one of the most significant macroeconomic problems. Turkey depreciated the Turkish Lira against foreign currencies to reduce its foreign trade deficit in the past. Using panel data analysis, the current study tests the J-curve for Turkey and its six main foreign trade partner countries - Russia, USA, Germany, UK, Italy, and China. Results do not support the validity of the J-curve hypothesis in the long run. Test results analysing the short-run indicate that the whole panel is statistically insignificant.

Hükümet İstikrarı ve Ticari Açıklık Arasındaki Nedensellik İlişkisi: Türkiye Örneği

International trade is very exposed to political risk and the existence of political risk components in a given market may cause problems in both export and import activities. Government instability is one of the political risk components that is related with trade openness. The paper examines the government stability-trade openness nexus for Turkey using Vector Error Correction Model (VECM) and VECM based Granger Causality test covering the period of 1984-2016. Results have shown that there is a unidirectional causality in the long run from trade openness to government stability. Because Turkey’s production of final goods usually is based on imports, an increase in exchange rate usually floats trade openness in favor of imports. This creates foreign trade deficit. Worsening economic conditions affects the government stability. Due to the unfavorable picture and economic crises in Turkey, the average duty time of the governments established between 1990-2003 was one year. Despite this, export-led growth and highest amount of foreign direct investment within three election periods starting from 2002, enabled the individuals to grasp the importance of stability in governance. During the 2010s, Turkey struggled with the foreign trade deficit, high inflation and unemployment rates brought about by the high exchange rate, and the deteriorating economic situation caused the ministers in the cabinet and even the presidential system to change. Thus, the study concluded that trade openness may affect the policy-relevant implications and create government instability for Turkey through changes in exchange rates and depreciation of Turkish lira.

THE EXISTENCE OF FOREIGN TRADE BALANCE CONVERGENCE IN EU MEMBER AND CANDIDATE COUNTRIES: AN EMPIRICAL ANALYSIS

The foreign trade deficit is an important problematic area for all countries, and it is the main cause of the current account deficit and the economic crises. It is useful to frequently analyze the level of these deficits. In this study, the presence of convergence among the EU member and candidate countries in terms of the foreign trade balance was analyzed with second-generation panel data analysis methods, operating under cross-sectional dependence, by using data from the 2000-2019 period. In the study, firstly the existence of cross-sectional dependence among the countries was analyzed and it was found that there was cross-sectional dependence among the countries included in the panel. In this study, firstly, CADF and HK panel unit root tests were carried out in order to test the existence of each country group's convergence to their group average; then in the country groups other than EU candidate countries, i.e., in the 36-country panel, in the EU28, EU15, and EU13 countries, it was determined that there was a convergence towards their own group means in terms of the foreign trade balance. Furthermore, the convergence of the country groups to the group average of the EU15 was tested by CADF and HK methods; and it was determined that the 36-country panel, the EU28, EU13 countries, and the EU candidate countries tend to converge towards the foreign trade balance of the EU15. Finally, the convergence of EU candidate countries to the EU13's foreign trade balance average was tested by CADF and HK methods, and according to the CADF tests, the EU candidate countries were unable to converge to the EU15 countries were also not able to converge to the EU13 countries. However, according to the HK test results, it was determined that the foreign trade balance of the 8 EU candidate countries converged to the foreign trade balance of the 13 countries that became members of the EU later. The robustness check was performed by using Fisher ADF, Fisher PP, LLC, and IPS panel unit root tests, and the results obtained were found to be consistent.

THE CURRENT GROWTH EFFECT OF HEALTH TOURISM MARKET DEVELOPMENT IN TURKEY FOR THE EVALUATION ON CURRENT ACCOUNT DEFICIT

Tourism sector is one of the major driving forces to develop the Turkish economy which provides the positive contributions with new employment opportunities and the national income and payments. With aid of this developments in economy by tourism, it has also increased the interaction with alternative areas. Health Tourism is also one of the special areas in which provides to the country high added value and foreign currency exchange income. Since the revenue outcome by health tourism is reaching up to 100 billion dollars, the national policy of health tourism enable countries has been undertaken as a high interested point of investment needed area. The critical threshold of the country’s Gross Domestic Product (GDP) is 4 to 5 percent as a current account balance and this deficient outcome in Turkey mostly takes on 5 to 4 percent which is a considered as a critical threshold. Health Tourism is expected to play a key role in bringing the values to the positive levels and therefore the focus is becoming on this area by health sector. Developing countries such as India, Singapore, and Thailand meet their foreign trade deficits with the income where they have obtained from this specific sector and the level of growth in this sector is at certain rate every year. The health Tourism is very crucial and significant sector for such a country Turkey, who has current budget deficit, and it is real economic sense. With Covid-19 crisis, the plans related with health tourism is re-evaluated by the coordination between Turkish Ministry of Health, Ministry of Tourism and Ministry of Economy. Especially, with the infrastructure works carried for public and city hospitals has been capable of providing health tourism services within the organization which is called “USHAŞ (International Health Services)”. The health tourism sector offers significant opportunities for Turkey during Covid-19 pandemic effects on our current account deficit and the decline in economic recovery of our tourism industry and losses. With health tourism created opportunities is already in an increasing trend, to contribute to the country’s economy much faster by increasing target markets with public-private cooperation.