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The 1990 Trade Liberalisation Policy of Turkey: An Applied General Equilibrium Assessment

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  • Roberto A. De Santis

Abstract

I use a static multi-sector, multi-labour, multi-household Applied General Equilibrium (AGE) model for Turkey to show that the trade policy implemented by Turkish policy-makers in the 1990s is not trade diverting. Aggregate welfare rises by 0.6% of the consumer income. Most importantly, since agriculture and traditional the rural income), while urban groups are worse off (-0.5% of the urban income). It is also shown that overall income inequality declines by 1.1-1.7%, and that its main source is the inter-income inequality between urban and rural areas, which decreases by 8.9- 14.7%. [D58, F14, F17]

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Economic Journal.

Volume (Year): 15 (2001)
Issue (Month): 2 (June)
Pages: 115-132

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Handle: RePEc:taf:intecj:v:15:y:2001:i:2:p:115-132

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  1. de Melo, Jaime & Robinson, Sherman, 1980. "The impact of trade policies on income distribution in a planning model for Colombia," Journal of Policy Modeling, Elsevier, vol. 2(1), pages 81-100, January.
  2. Frank A Cowell, 2006. "Inequality: Measurement," STICERD - Distributional Analysis Research Programme Papers 86, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  3. Reinert, Kenneth A & Roland-Holst, David W, 1998. "North-South Trade and Occupational Wages: Some Evidence from North America," Review of International Economics, Wiley Blackwell, vol. 6(1), pages 74-89, February.
  4. J. Mercenier & Erinç Yeldan, 1996. "On Turkey's Trade Policy : Is A Customs Union with Europe Enough?," Departmental Working Papers 964, Bilkent University, Department of Economics.
  5. Levy, Santiago & van Wijnbergen, Sweder, 1995. "Transition Problems in Economic Reform: Agriculture in the North American Free Trade Agreement," American Economic Review, American Economic Association, vol. 85(4), pages 738-54, September.
  6. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-75, December.
  7. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
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Cited by:
  1. Kamil Yilmaz, 2010. "Taking Stock: The Customs Union between Turkey and the EU Fifteen Years Later," Koç University-TUSIAD Economic Research Forum Working Papers 1023, Koc University-TUSIAD Economic Research Forum.
  2. Kamil Yilmaz, 2009. "International Business Cycle Spillovers," Koç University-TUSIAD Economic Research Forum Working Papers 0903, Koc University-TUSIAD Economic Research Forum, revised Nov 2009.

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