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Trade Reform in the Partially Liberalized Economy of Turkey

Author

Listed:
  • Harrison, Glenn W
  • Rutherford, Thomas F
  • Tarr, David G

Abstract

Recent reforms in trade policy in Turkey have produced a foreign trade regime that exhibits very little antiexport bias on average. A quantitative, multisectoral general equilibrium model of the Turkish economy shows that piecemeal trade policy reform, based on first-best rationales that are appropriate for highly distorted economies, would not now be appropriate. Further tariff reductions must be coordinated with export subsidy reductions to attain significant welfare benefits. The dispersion of distortions, especally export subsidies, is more important than their level. A policy of harmonizing tariffs to the common external tariff of the European Community has virtually no effect on welfare. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1993. "Trade Reform in the Partially Liberalized Economy of Turkey," World Bank Economic Review, World Bank Group, vol. 7(2), pages 191-217, May.
  • Handle: RePEc:oup:wbecrv:v:7:y:1993:i:2:p:191-217
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    Cited by:

    1. Mercenier, Jean & Yeldan, Erinc, 1999. "A Plea For Greater Attention on the Data in Policy Analysis," Journal of Policy Modeling, Elsevier, vol. 21(7), pages 851-873, December.
    2. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Economic implications for Turkey of a Customs Union with the European Union," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 16, pages 395-404 World Scientific Publishing Co. Pte. Ltd..
    3. Lord, Montague, 2000. "Macroeconomic Dynamics of Egypt: An Integrated Approach to Trade and Exchange Rate Policy Reforms," MPRA Paper 50642, University Library of Munich, Germany.
    4. Mercenier, Jean & Yeldan, Erinc, 1997. "On Turkey's trade policy: Is a customs union with Europe enough?," European Economic Review, Elsevier, vol. 41(3-5), pages 871-880, April.
    5. Bhattarai, Keshab & Ghosh, Madanmohan & Whalley, John, 1999. "On some properties of a trade closure widely used in numerical modelling," Economics Letters, Elsevier, vol. 62(1), pages 13-21, January.
    6. Balistreri, Edward J. & Rutherford, Thomas F. & Tarr, David G., 2009. "Modeling services liberalization: The case of Kenya," Economic Modelling, Elsevier, vol. 26(3), pages 668-679, May.
    7. repec:wsi:wschap:9789813108448_0017 is not listed on IDEAS
    8. Nguyen Chan & Tran Kim Dung, 2006. "The Impact of Trade Liberalization on Household Welfare in Vietnam," Working Papers MPIA 2006-02, PEP-MPIA.
    9. Rutherford, Thomas F. & Tarr, David G., 1998. "Trade liberalization and endogenous growth in a small open economy : a quantitative assessment," Policy Research Working Paper Series 1970, The World Bank.
    10. Vinokurov, Evgeny & Demidenko, Mikhail & Pelipas, Igor & Tochitskaya, Irina & Shymanovich, Gleb & Lipin, Andrey & Movchan, Veronika, 2015. "Estimating the Economic Effects of Reducing Non-Tariff Barriers in the EEU," MPRA Paper 68058, University Library of Munich, Germany.
    11. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997. "Trade policy options for Chile : a quantitative evaluation," Policy Research Working Paper Series 1783, The World Bank.
    12. Thomas F. Rutherford & David G. Tarr, 2017. "Trade liberalization, product variety and growth in a small open economy: a quantitative assessment," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 17, pages 389-414 World Scientific Publishing Co. Pte. Ltd..
    13. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April.
    14. Schmitz, Troy G., 2002. "Measuring Inefficiency In The Presence Of An Export Tax, An Import Tariff, And A State Trading Enterprise," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
    15. repec:wsi:wschap:9789813108448_0007 is not listed on IDEAS
    16. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2017. "Rules Of Thumb For Evaluating Preferential Trading Arrangements: Evidence From Cge Assessments," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 7, pages 145-153 World Scientific Publishing Co. Pte. Ltd..
    17. Burrell, Alison M. & Kurzweil, Marianne, 2007. "Distortions to Agricultural Incentives in Turkey," Agricultural Distortions Working Paper 48388, World Bank.
    18. Glenn W. Harrison & Thomas F. Rutherford & Tarr,David, 2003. "Rules of thumb for evaluating preferential trading arrangements : evidence from computable general equilibrium assessments," Policy Research Working Paper Series 3149, The World Bank.
    19. Eric Bond & Mario Crucini & Joel Rodrigue & Tristan Potter, 2013. "Misallocation and Productivity Effects of the Smoot-Hawley Tariff," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 120-134, January.
    20. Mercenier, Jean & Yeldan, A. Erinc, 1996. "On Turkey's European Trade Policy: How Desirable is a Status Quo," 1996: Implications of the New Growth Theory to Agricultural Trade Research and Trade Policy Conference, December 1996, Washington DC 50865, International Agricultural Trade Research Consortium.
    21. Jensen, Jesper & Tarr, David, 2002. "Trade, foreign exchange, and energy policies in the Islamic Republic of Iran : reform agenda, economic implications, and impact on the poor," Policy Research Working Paper Series 2768, The World Bank.
    22. World Bank, 2001. "Trade and Foreign Exchange Policies in Iran : Reform Agenda, Economic Implications and Impact on the Poor," World Bank Other Operational Studies 15478, The World Bank.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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