Karaoğuz, Hüseyin EmrahKutlay, MustafaKaraoguz, Huseyin Emrah2023-10-192023-10-19202301468-38571743-9639https://doi.org/10.1080/14683857.2022.2109828https://hdl.handle.net/20.500.12469/5442The literature on trading states has advanced our understanding of foreign economic policy dynamics, but what constitutes a proper trading state and determines its resilience remains somewhat unclear. This article contributes to the literature by developing a political economy framework to assess the role of 'state capacity' in conditioning Turkey's foreign economic policies. Using Turkey as a case, we argue that states are more likely to show suboptimal economic engagement in case of weak state capacity, as (i) they fail to pursue effective industrial policy resulting in low exit costs, (ii) business elites cannot put pressure on the political leadership for the preservation of existing trade ties in the event of an external shock, and (iii) weak financial support mechanisms lead to insufficient assistance to national firms operating abroad.eninfo:eu-repo/semantics/closedAccessPolitical-EconomyBusinessInterdependenceFutureTrading statePolitical-Economystate capacityBusinessforeign economic policyInterdependencedevelopmental foreign policyFutureTurkish foreign policyArticle409429223WOS:00083695480000110.1080/14683857.2022.21098282-s2.0-85136799444Q2Q1