How did the Turkish Industry Respond to Increased Competitive Pressures, 1998-2007?
AbstractThis study examines how Turkish manufacturing industry responded to increased competitive pressures that it has faced over the past decade. Pressures arose both from growing trade competition from low-cost countries which have similar trade specialisation patterns to Turkey’s, and from strong trend real currency appreciation that Turkey has experienced during this period. In response, Turkish manufacturers increased their productivity, differentiated products, moderated wage growth and drew on declining capital and imported input costs. The study provides a detailed statistical analysis of these avenues of response, and the contribution they brought to the competitive margins of the manufacturing industry. It shows that while the structurally strong sectors of the economy made successful use of these avenues, the less sophisticated and lower-technology activities using low-skilled labour and low-price local inputs could not fully cope, and lost ground. The latter sectors’ still large weight in total manufacturing output and employment makes their adjustment a persisting challenge for the Turkish economy.
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Bibliographic InfoPaper provided by Research and Monetary Policy Department, Central Bank of the Republic of Turkey in its series Working Papers with number 0804.
Date of creation: 2008
Date of revision:
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More information through EDIRC
Turkey; trade; competitiveness; clustering in sectors;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L6 - Industrial Organization - - Industry Studies: Manufacturing
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-14 (All new papers)
- NEP-COM-2008-08-14 (Industrial Competition)
- NEP-CSE-2008-08-14 (Economics of Strategic Management)
- NEP-CWA-2008-08-14 (Central & Western Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karine Lepron & Paul Schreyer, 1998. "Relative Trade-Weighted Unit Labour Costs by Industry," OECD Science, Technology and Industry Working Papers 1998/1, OECD Publishing.
- Ashoka Mody & Deniz Igan & Stefania Fabrizio, 2007. "The Dynamics of Product Quality and International Competitiveness," IMF Working Papers, International Monetary Fund 07/97, International Monetary Fund.
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