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Foreign trade and its relation to competition and productivity in Turkish industry

  • Foroutan, Faezeh
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    This paper examines how the reform of the trade regime in Turkey during the 1980s has affected the performance and competitiveness of the Turkish industrial sector. It was found that trade liberalization and more exposure to international competition generally benefited Turkish industry in the 1980s. But the effect of international competition appears to have been felt mainly in the private sector - especially in tradable industries. In the first half of the 1980s, international competition decreased the price-cost margin and increased the growth rate of productivity in the private sector. In the public sector, deeper trade penetration seems to have lowered the price-cost margin in the public enterprises that were above-average in capital intensity, but had no impact on productivity. Improved productivity in the public enterprises appears to be more related to changes in other areas - probably the reform of management. The paper also provides a brief background on trade and other economic reforms in Turkey in the 1980s.

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    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1991/02/01/000009265_3960930221612/Rendered/PDF/multi0page.pdf
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    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 604.

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    Date of creation: 28 Feb 1991
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    Handle: RePEc:wbk:wbrwps:604
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    1. 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.
    2. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
    3. Dani Rodrik, 1988. "Closing the Technology Gap: Does Trade Liberalization Really Help?," NBER Working Papers 2654, National Bureau of Economic Research, Inc.
    4. Schmalensee, Richard, 1989. "Inter-industry studies of structure and performance," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 16, pages 951-1009 Elsevier.
    5. Romer, Paul M., 1989. "What determines the rate of growth and technological change?," Policy Research Working Paper Series 279, The World Bank.
    6. Matthew D. Shapiro, 1987. "Measuring Market Power in U.S. Industry," NBER Working Papers 2212, National Bureau of Economic Research, Inc.
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