Overvalued exchange rate policy applied during the capital liberalization process starting in 1989 in Turkish economy decreased the price of import goods in terms of national currency and increased the import volume of the intermediate goods or investment goods accordingly. This change caused the foreign source dependence growth in economy and import demand function and income elasticity of import gained importance in terms of the effectiveness of economy policies to be used in order to lessen the structure of the foreign dependence. The aim of this study is to test the validity of the Thirlwall Law, which is also called the balance of payments constrained growth model in the literature of economics. It includes the period between 1989 and 2013. Thirlwall Law is not valid in that period according to the performed analysis.
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