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Investigation on the Determinants of Turkish Export-Boom in 2000s

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  • Aysan, Ahmet Faruk
  • Hacihasanoglu, Yavuz Selim

Abstract

This paper investigates the causes of Turkish export-boom after 2000 in the manufacturing sector. We mainly concentrate on cost and productivity aspects of the production in the manufacturing sector. Effects of productivity, wage and exchange rate are analyzed in the framework of the augmented unit labor cost model. Following the Edwards and Golub (2004) paper we use the dynamic panel data techniques for the analysis. In addition, the importance of the above mentioned factors is examined for the rising and declining sectors. We find that manufacturing export is negatively related to the unit labor cost (ULC). Decomposition of ULC into its two components also shows that an improvement in productivity increases export while an increase in nominal wages decreases it. We also find that nominal wage is an important factor in the declining sectors while productivity is the stimulus in rising sectors.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5493.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:5493
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Keywords: Manufacturing export; unit labor cost; wage; productivity; real effective exchange rate;

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Find related papers by JEL classification:
  • F15 - International Economics - - Trade - - - Economic Integration
  • F14 - International Economics - - Trade - - - Empirical Studies of Trade
  • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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  1. Kunst, Robert M. & Marin, Dalia, 1989. "On Exports and Productivity: A Causal Analysis," Munich Reprints in Economics 3113, University of Munich, Department of Economics.
  2. Antonis Adam & Thomas Moutos, 2005. "Turkish Delight for Some, Cold Turkey for Others?: The Effects of the EU-Turkey Customs Union," CESifo Working Paper Series 1550, CESifo Group Munich.
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  7. Emre Özçelik & Erol Taymaz, 2001. "Does Innovativeness Matter for International Competitiveness in Developing Countries? The Case of Turkish Manufacturing Industries," ERC Working Papers 0107, ERC - Economic Research Center, Middle East Technical University, revised Jul 2001.
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Cited by:

  1. Gulay Gunluk-Senesen & Umit Senesen, 2011. "Decomposition Of Labour Demand By Employer Sectors And Gender: Findings For Major Exporting Sectors In Turkey," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 233-253.
  2. Kamil Yilmaz & Umit Izmen, 2009. "Turkey's Recent Trade and Foreign Direct Investment Performance," Koç University-TUSIAD Economic Research Forum Working Papers 0902, Koc University-TUSIAD Economic Research Forum.
  3. Kamil Yilmaz, 2009. "International Business Cycle Spillovers," Koç University-TUSIAD Economic Research Forum Working Papers 0903, Koc University-TUSIAD Economic Research Forum, revised Nov 2009.
  4. Cebeci, Tolga & Fernandes, Ana M., 2013. "Micro dynamics of Turkey's export boom in the 2000s," Policy Research Working Paper Series 6452, The World Bank.

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