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The Effect of Distribution on Accumulation, Capacity Utilization and Employment: Testing the Wage-Led Hypothesis for Turkey

Author

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  • Ozlem Onaran

    (Istanbul Technical University)

  • Engelbert Stockhammer

Abstract

This paper analyzes the impact of distribution on accumulation, capacity utilization and employment for Turkey by estimating a post-Keynesian open economy model in a structural vector autoregression form. The need for empirical analysis of the relationship between distribution and growth is particularly pronounced in the case of developing countries, where the pro-capital income policies of structural adjustment programs implemented in the last two decades is still far from fulfilling their promises in many cases. The aim of the paper is, to evaluate whether accumulation and employment are wage-led or profit-led. The results point out that accumulation, growth and employment are wage-led in Turkey.

Suggested Citation

  • Ozlem Onaran & Engelbert Stockhammer, 2001. "The Effect of Distribution on Accumulation, Capacity Utilization and Employment: Testing the Wage-Led Hypothesis for Turkey," Working Papers 0130, Economic Research Forum, revised 10 2001.
    • Handle: RePEc:erg:wpaper:0130
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    References listed on IDEAS

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    1. Erin Yeldan & Kivilcim Metin-…zcan & Ebru Voyvoda, 1999. "Dynamics of Macroeconomic Adjustment in a Globalized Developing Economy : Growth, Accumulation and Distribution, Turkey 1969-1998," Working Papers 9905, Department of Economics, Bilkent University.
    2. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," The World Bank Economic Review, World Bank, vol. 11(1), pages 33-57, January.
    3. Engelbert Stockhammer, 2004. "Is there an equilibrium rate of unemployment in the long run?," Review of Political Economy, Taylor & Francis Journals, vol. 16(1), pages 59-77.
    4. Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 14(4), pages 375-393, December.
    5. Epstein,Gerald A. & Gintis,Herbert M., 2011. "Macroeconomic Policy after the Conservative Era," Cambridge Books, Cambridge University Press, number 9780521148412.
    6. Davidson, Paul, 1998. "Post Keynesian Employment Analysis and the Macroeconomics of OECD Unemployment," Economic Journal, Royal Economic Society, vol. 108(448), pages 817-831, May.
    7. Taylor, Lance, 1985. "A Stagnationist Model of Economic Growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 9(4), pages 383-403, December.
    8. A. Erinç Yeldan, 1995. "Surplus Creation and Extraction Under Structural Adjustment: Turkey, 1980-1992," Review of Radical Political Economics, Union for Radical Political Economics, vol. 27(2), pages 38-72, June.
    9. Engelbert Stockhammer, 2000. "Explaining European Unemployment: Testing the NAIRU Theory and a Keynesian Approach," Department of Economics Working Papers wuwp068, Vienna University of Economics and Business, Department of Economics.
    10. Sims, Christopher A & Stock, James H & Watson, Mark W, 1990. "Inference in Linear Time Series Models with Some Unit Roots," Econometrica, Econometric Society, vol. 58(1), pages 113-144, January.
    11. Blecker, Robert A, 1989. "International Competition, Income Distribution and Economic Growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 13(3), pages 395-412, September.
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