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Turkish economic policy under AKP government: an assessment for 2002-2007

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  • Ugur, Mehmet

Abstract

This article agrees with the received wisdom that the rule of AKP government has been associated with better macroeconomic outcomes in Turkey from 2002-2007. However, it argues that it is necessary to question the received wisdom for several reasons. First, AKP government’s contribution to Turkey’s economic performance from 2002-2007 was largely due to its consent to ‘tie its hands’ under the pre-existing International Monetary Fund (IMF) and European Union (EU) accession conditionality rather than because of AKP-specific policy innovation. Secondly, AKP’s attempt at policy innovation after 2004 have been associated with less impressive economic outcomes. Finally, the AKP has been unsuccessful in addressing the structural constraints and vulnerabilities that threaten the long-run sustainability of Turkey’s economic growth and its macroeconomic stability.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18235.

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Date of creation: 24 Apr 2008
Date of revision: 29 Oct 2009
Handle: RePEc:pra:mprapa:18235

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Keywords: Economic policy analysis; economic governance; inflation targeting; structural reforms; Turkish economy;

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  1. Hnatkovska, Viktoria & Loayza, Norman, 2004. "Volatility and growth," Policy Research Working Paper Series 3184, The World Bank.
  2. Burcu Gurcihan & Erdal Yilmaz, 2007. "Turkiye’de Kamu Borc Stokunun Yapisi : Orijinal Gunah Gostergeleri ve Risk-Dahil Kamu Borc Yuku," Working Papers 0702, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
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