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The 1990 Trade Liberalisation Policy of Turkey: An Applied General Equilibrium Assessment


  • Roberto A. De Santis


I use a static multi-sector, multi-labour, multi-household Applied General Equilibrium (AGE) model for Turkey to show that the trade policy implemented by Turkish policy-makers in the 1990s is not trade diverting. Aggregate welfare rises by 0.6% of the consumer income. Most importantly, since agriculture and traditional the rural income), while urban groups are worse off (-0.5% of the urban income). It is also shown that overall income inequality declines by 1.1-1.7%, and that its main source is the inter-income inequality between urban and rural areas, which decreases by 8.9- 14.7%. [D58, F14, F17]

Suggested Citation

  • Roberto A. De Santis, 2001. "The 1990 Trade Liberalisation Policy of Turkey: An Applied General Equilibrium Assessment," International Economic Journal, Taylor & Francis Journals, vol. 15(2), pages 115-132, June.
  • Handle: RePEc:taf:intecj:v:15:y:2001:i:2:p:115-132
    DOI: 10.1080/10168730100000040

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    References listed on IDEAS

    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. 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.
    3. Reinert, Kenneth A & Roland-Holst, David W, 1998. "North-South Trade and Occupational Wages: Some Evidence from North America," Review of International Economics, Wiley Blackwell, vol. 6(1), pages 74-89, February.
    4. de Melo, Jaime & Robinson, Sherman, 1980. "The impact of trade policies on income distribution in a planning model for Colombia," Journal of Policy Modeling, Elsevier, vol. 2(1), pages 81-100, January.
    5. Cowell, Frank, 2006. "Inequality: measurement," LSE Research Online Documents on Economics 2686, London School of Economics and Political Science, LSE Library.
    6. Levy, Santiago & van Wijnbergen, Sweder, 1995. "Transition Problems in Economic Reform: Agriculture in the North American Free Trade Agreement," American Economic Review, American Economic Association, vol. 85(4), pages 738-754, September.
    7. Danziger, Sheldon & Taussig, Michael K, 1979. "The Income Unit and the Anatomy of Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 365-375, December.
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    Cited by:

    1. Kamil Yilmaz, 2009. "International Business Cycle Spillovers," KoƧ University-TUSIAD Economic Research Forum Working Papers 0903, Koc University-TUSIAD Economic Research Forum, revised Nov 2009.

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