IDEAS home Printed from https://ideas.repec.org/p/ags/umedbu/7464.html
   My bibliography  Save this paper

Structural Adjustment and Trade in Turkey: A General Equilibrium Analysis of the Export-Led Versus Domestic Demand-Led Strategies of Development

Author

Listed:
  • Yeldan, A. Erinc

Abstract

This paper attempts to assess the feasibility of the current strategy of manufactured export-led growth for Turkey over the Fifth and Sixth Five-Year Plan periods (1985-1994). The explicit hypothesis of the paper is that a domestic market, wage-goods oriented development strategy with agriculture leading the process will be more conducive to Turkey's long-term economic growth, as compared to an export-oriented strategy. The simulation experiments are conducted with the aid of a dynamic micro-planning model which belongs to a class of price-endogenous constructs known as Computable General Equilibrium (CGE) models. The model as applied to Turkey distinguishes seven economic sectors, four types of labor, three consumer groups, seven social classes, and a government. In addition, it accommodates both fixed and flexible wages along with a disequilibrium mechanism of labor allocation, endogenous rural-urban migration, international trade flows with government intervention, and separate rules of allocation for the private -versus- public fixed investment. The overall conclusion that is supported by this study is that by combining a time-wise regressive, selective export-promotion program with a domestic demand oriented, wage-goods strategy, Turkey can achieve a superior growth performance over the current strategy of manufactured export-led industrialization. The model results further emphasize the pressing need for the revitalization of the domestic demand, and the importance of the agricultural productivity growth in promoting Turkey's overall objectives of industrialization, income equity, and foreign trade over the Fifth and Sixth Plan periods.

Suggested Citation

  • Yeldan, A. Erinc, 1987. "Structural Adjustment and Trade in Turkey: A General Equilibrium Analysis of the Export-Led Versus Domestic Demand-Led Strategies of Development," Bulletins 7464, University of Minnesota, Economic Development Center.
  • Handle: RePEc:ags:umedbu:7464
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/7464
    Download Restriction: no

    References listed on IDEAS

    as
    1. Cline, William R., 1982. "Can the East Asian model of development be generalized?," World Development, Elsevier, vol. 10(2), pages 81-90, February.
    2. Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206.
    3. Schmitz, Hubert, 1982. "Growth constraints on small-scale manufacturing in developing countries: a critical review," World Development, Elsevier, vol. 10(6), pages 429-450, June.
    4. Graciela Chichilnisky & Lance Taylor, 1980. "Agriculture and the Rest of the Economy: Macroconnections and Policy Restraints," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(2), pages 303-309.
    5. Sampson, Gary P., 1980. "Contemporary protectionism and exports of developing countries," World Development, Elsevier, vol. 8(2), pages 113-127, February.
    6. Adams, Dale W, 1978. "Mobilizing Household Savings through Rural Financial Markets," Economic Development and Cultural Change, University of Chicago Press, vol. 26(3), pages 547-560, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Turhan, Ibrahim M., 2008. "Why did it work this time: a comparative analysis of transformation of Turkish economy after 2002," MPRA Paper 31158, University Library of Munich, Germany.

    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:ags:umedbu:7464. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/dcumnus.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.