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Trade Reform in the Partially Liberalized Economy of Turkey

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  • Harrison, Glenn W
  • Rutherford, Thomas F
  • Tarr, David G

Abstract

Recent reforms in trade policy in Turkey have produced a foreign trade regime that exhibits very little antiexport bias on average. A quantitative, multisectoral general equilibrium model of the Turkish economy shows that piecemeal trade policy reform, based on first-best rationales that are appropriate for highly distorted economies, would not now be appropriate. Further tariff reductions must be coordinated with export subsidy reductions to attain significant welfare benefits. The dispersion of distortions, especally export subsidies, is more important than their level. A policy of harmonizing tariffs to the common external tariff of the European Community has virtually no effect on welfare. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1993. "Trade Reform in the Partially Liberalized Economy of Turkey," The World Bank Economic Review, World Bank, vol. 7(2), pages 191-217, May.
    • Handle: RePEc:oup:wbecrv:v:7:y:1993:i:2:p:191-217
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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