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Economic Growth under Embargoes in North Cyprus: An Input-Output Analysis

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  • Guncavdi, Oner
  • Kucukcifci, Suat
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    Abstract

    The North Cyprus economy has been under economic embargoes for many years, and has been struggling to eradicate the income difference with the south of the island with extremely limited facilities. Successive governments have accordingly developed distinctive responses to cope with these difficulties. The paper examines these features of the North Cyprus economy with a particular emphasis on its response to economic embargoes. The paper also examines how important economic embargoes would be (or have been) in the North Cypriot economy. For this purpose total economic growth is decomposed with respect to different components of demand. The results show that despite the presence of embargoes, external demand and the availability of import flows are detrimental factors for economic growth. Also domestic final demand is an equally important source of growth in the North Cyprus economy.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9621.

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    Date of creation: 16 Jul 2008
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    Handle: RePEc:pra:mprapa:9621

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    1. Read, Robert, 2001. "Growth, Economic Development and Structural Transition in Small Vulnerable States," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    2. Guncavdi Oner & Kucukcifci Suat, 2005. "Financial Reforms and the Decomposition of Economic Growth: An Investigation of the Changing Role of the Financial Sector in Turkey," Review of Middle East Economics and Finance, De Gruyter, vol. 3(1), pages 61-84, April.
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