Investigating The Economic Performance of Central Asian Turkic Republics in Terms of Dutch Disease

The Dutch Disease, which means that beneficial developments for an economy begins to give harmful results over time, can be seen especially in the countries having rich natural resources. Will the Central Asian Turkic Republics, which have achieved high income thanks to their resources such as oil and natural gas, come to such a problem in the future? If there is such a risk, what would be the solutions and the measures to be taken? In this paper, the answers of these questions are sought. In this study, a panel data analysis applied for 1998-2015 periods. Determining cross-sectional dependence, stationarity of the series was examined by PANKPSS test with multiple structural breaks and it is found that the series are stationary at level. In regression analysis, a clear result could not be obtained about the existence of Dutch Disease. Causality relations among the series were investigated by Dumitrescu and Hurlin (2012) method and results implying the existence of Dutch Disease in these countries were obtained. In the study, risks of economic models based on natural resources export and required precautions are explained with good application examples around the world. It is expected that the attention of policymakers of related countries will be drawn on this issue in order them to impose required precautions to have a sustainable and high economic growth.