This paper investigates the causes of Turkish export-boom after 2000 in the manufacturing sector. We mainly concentrate on cost and productivity aspects of the production in the manufacturing sector. Effects of productivity, wage and exchange rate are analyzed in the framework of the augmented unit labor cost model. Following the Edwards and Golub (2004) paper we use the dynamic panel data techniques for the analysis. In addition, the importance of the above mentioned factors is examined for the rising and declining sectors. We find that manufacturing export is negatively related to the unit labor cost (ULC). Decomposition of ULC into its two components also shows that an improvement in productivity increases export while an increase in nominal wages decreases it. We also find that nominal wage is an important factor in the declining sectors while productivity is the stimulus in rising sectors.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
5493.
Find related papers by JEL classification: F15 - International Economics - - Trade - - - Economic Integration F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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