IDEAS home Printed from https://ideas.repec.org/a/and/journl/v6y2006i1p145-158.html
   My bibliography  Save this article

The impact of Productivity Difference Among Sectors on Inflation and Real Exchange Rate in Turkey

Author

Listed:
  • Omer Ozcicek

    (Gaziantep University)

Abstract

This paper empirically tests the Balassa-Samuelson effect in Turkey. According to Balassa-Samuelson hypothesis, the productivity in tradable sectors increase faster than the productivity in non-tradable which causes a lower increase in the price level of tradable goods. This mechanism in general generates a higher inflation in the country. As aresult of this inflationary effect the real exchange rate appreciates. This study presets some supportive evidences about the existence of this hypothesis in Turkey. Time series analysis show that relative productivities have some effect on relative prices, and real exchange rate between Turkey and Germany, relative price levels of Turkey and Germany are cointegrated as the Balassa-Samuelson conjecture foresees.

Suggested Citation

  • Omer Ozcicek, 2006. "The impact of Productivity Difference Among Sectors on Inflation and Real Exchange Rate in Turkey," Anadolu University Journal of Social Sciences, Anadolu University, vol. 6(1), pages 145-158, June.
    • Handle: RePEc:and:journl:v:6:y:2006:i:1:p:145-158
    as

    Download full text from publisher

    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2006-1/sos_bil.8.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Nominal exchange rates; inflation; causality.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:and:journl:v:6:y:2006:i:1:p:145-158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Social Sciences Institute (email available below). General contact details of provider: https://edirc.repec.org/data/iianatr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.