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Observations on Turkey’s Recent Economic Performance

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  • Asaf Akat

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  • Ege Yazgan

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Abstract

We establish that the Turkish economy underwent a remarkable transformation during the last decade. We identify the underpinnings of this successful transformation as well as the inadequate policies that enabled vulnerabilities to accumulate. Despite improvement in the economic fundamentals, volatility and dependence on external finance not only persisted, but actually increased during the last decade. We discuss the structural causes of the widening external deficit. Finally, we evaluate Turkey’s outstanding economic performance in the aftermath of the global financial crisis and the recent soft landing and rebalancing episode. Copyright International Atlantic Economic Society 2013

Suggested Citation

  • Asaf Akat & Ege Yazgan, 2013. "Observations on Turkey’s Recent Economic Performance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(1), pages 1-27, March.
  • Handle: RePEc:kap:atlecj:v:41:y:2013:i:1:p:1-27 DOI: 10.1007/s11293-012-9353-z
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. İzak Atiyas & Ozan Bakis, 2015. "Structural Change and Industrial Policy in Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(6), pages 1209-1229, November.
    2. Modugno, Michele & Soybilgen, Barış & Yazgan, Ege, 2016. "Nowcasting Turkish GDP and news decomposition," International Journal of Forecasting, Elsevier, vol. 32(4), pages 1369-1384.
    3. Toraganlı, Nazlı & Yazgan, M. Ege, 2016. "Exchange rates and firm survival: An examination with Turkish firm-level data," Economic Systems, Elsevier, vol. 40(3), pages 433-443.
    4. Nazli Karamollaoglu & M. Ege Yazgan, 2014. "Firm Exit and Exchange Rates: An Examination with Turkish Firm-Level Data," Koç University-TUSIAD Economic Research Forum Working Papers 1411, Koc University-TUSIAD Economic Research Forum.
    5. Mustafa ÇAKIR & Turgay GEÇER, 2015. "Assessing Recent Turkey’s Foreign Trade Performance," Turkish Economic Review, KSP Journals, vol. 2(4), pages 269-276, December.
    6. repec:mes:emfitr:v:51:y:2015:i:6:p:1209-1229 is not listed on IDEAS
    7. Daron Acemoglu & Murat Ucer, 2015. "The Ups and Downs of Turkish Growth, 2002-2015: Political Dynamics, the European Union and the Institutional Slide," NBER Working Papers 21608, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Economic growth; External deficit; Capital flows; Soft-landing; Global financial crisis; E60; F32; F43;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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