Why did it work this time: a comparative analysis of transformation of Turkish economy after 2002
Turkey had several unsuccessful stabilization efforts during 1980s and 1990s. Thanks to policies that were put into practice after the 2001 crisis, which constitutes a turning point for Turkish economy, fiscal discipline was restored, single digit inflation was reached, and yet growth rate was doubled compared to the previous decade average. As a result investment climate improved and the economy benefited from substantial amount of foreign direct investment and other long-term capital inflows. However these developments had some adverse side effects as well. Real appreciation of domestic currency, deterioration of trade balance, and increasing private indebtedness generated vulnerability for sudden stops. Beside, increasing global integration and very rapid shift in the economic circumstances caused difficulties for traditional sectors. This paper analyzes the Turkish experience after 2001 and identifies underlying dynamics of the restructuring program, while denoting the costs of this transition. Turkish case provides evidence in favor of disinflation programs combined with sound fiscal policies in spite of some adverse effects in the short run.
|Date of creation:||Apr 2008|
|Date of revision:|
|Publication status:||Published in Asian-African Journal of Economics and Econometrics 2.8(2008): pp. 255-280|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Acemoglu, Daron & Johnson, Simon & Robinson, James A & Thaicharoen, Yunyong, 2002.
"Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth,"
CEPR Discussion Papers
3575, C.E.P.R. Discussion Papers.
- Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January.
- Daron Acemoglu & Simon Johnson & James Robinson & Yunyong Thaicharoen, 2002. "Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth," NBER Working Papers 9124, National Bureau of Economic Research, Inc.
- Anne O. Krueger, 1987. "The Importance of Economic Policy in Development: Contrasts Between Korea and Turkey," NBER Working Papers 2195, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2014.
"Addicted to Dollars,"
Annals of Economics and Finance,
Society for AEF, vol. 15(1), pages 1-50, May.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003. "Addicted to Dollars," CEMA Working Papers 594, China Economics and Management Academy, Central University of Finance and Economics.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003. "Addicted to Dollars," NBER Working Papers 10015, National Bureau of Economic Research, Inc.
- Vladimir Popov, 2000. "Shock Therapy Versus Gradualism: The End Of The Debate (Explaining The Magnitude Of Transformational Recession)," Comparative Economic Studies, Palgrave Macmillan, vol. 42(1), pages 1-57, April.
- Peter Murrell, 1991. "Can Neoclassical Economics Underpin the Reform of Centrally Planned Economies?," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 59-76, Fall.
- John Marangos, 2004. "Was Shock Therapy Consistent with Democracy?," Review of Social Economy, Taylor & Francis Journals, vol. 62(2), pages 221-243.
- Ronald I. McKinnon, 1991. "Financial Control in the Transition from Classical Socialism to a Market Economy," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 107-122, Fall.
- Rodrik, Dani, 1990.
"Premature Liberalization, Incomplete Stabilization: The Ozal Decade in Turkey,"
CEPR Discussion Papers
402, C.E.P.R. Discussion Papers.
- Dani Rodrik, 1990. "Premature Liberalization, Incomplete Stabilization: the Ozal Decade in Turkey," NBER Working Papers 3300, National Bureau of Economic Research, Inc.
- Akyuz, Yilmaz & Boratav, Korkut, 2003. "The Making of the Turkish Financial Crisis," World Development, Elsevier, vol. 31(9), pages 1549-1566, September.
- Stanley Fischer & Alan Gelb, 1991. "The Process of Socialist Economic Transformation," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 91-105, Fall.
- Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
- 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.
- Michael Bruno, 1992. "Stabilization and Reform in Eastern Europe: A Preliminary Evaluation," IMF Working Papers 92/30, International Monetary Fund.
- John Marangos, 2004. "A Post-Keynesian Approach to the Transition Process," Eastern Economic Journal, Eastern Economic Association, vol. 30(3), pages 441-465, Summer.
- Douglas North, 2003. "The Role of Institutions in Economic Development," ECE Discussion Papers Series 2003_2, UNECE.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:31158. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.