IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/7837.html
   My bibliography  Save this paper

The 2000-2001 Financial Crisis in Turkey: A Crisis for Whom?

Author

Listed:
  • Dufour, Mathieu
  • Orhangazi, Ozgur

Abstract

In this paper, we study the consequences of the 2000-2001 financial crisis in Turkey to identify the impacts of the crisis on capital and labor. We uncover three significant empirical effects of this crisis. First, international capital benefited from the crisis by both increasing its total assets in Turkey and income flows from these assets, while large domestic financial capitalists also increased their profits in the aftermath of the crisis. Second, industrial capital benefited via a repression of labor. Third, the attempt to ‘remedy’ the economy by imposing structural changes furthered the interests of capital in general.

Suggested Citation

  • Dufour, Mathieu & Orhangazi, Ozgur, 2007. "The 2000-2001 Financial Crisis in Turkey: A Crisis for Whom?," MPRA Paper 7837, University Library of Munich, Germany, revised 2008.
    • Handle: RePEc:pra:mprapa:7837
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/7837/1/MPRA_paper_7837.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ozgur Orhangazi, 2002. "Turkey: bankruptcy of neoliberal policies and the possibility of alternatives," Review of Radical Political Economics, Union for Radical Political Economics, vol. 34(3), pages 335-341, September.
    2. Ozlem Onaran, 2009. "Wage share, globalization and crisis: the case of the manufacturing industry in Korea, Mexico and Turkey," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(2), pages 113-134.
    3. Erinc Yeldan, 2007. "Patterns of Adjustment under the Age of Finance: The Case of Turkey as a Peripheral Agent of Neoliberal Globalization," Working Papers wp126, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Mihir A. Desai & C. Fritz Foley & Kristin J. Forbes, 2004. "Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises," NBER Working Papers 10545, National Bureau of Economic Research, Inc.
    5. Kang-Kook Lee & James Crotty, 2001. "Korea's Neoliberal Restructuring: Miracle or Disaster?," Published Studies ps9, Political Economy Research Institute, University of Massachusetts at Amherst.
    6. Rodriguez Francisco & Jayadev Arjun, 2013. "The Declining Labor Share of Income," Journal of Globalization and Development, De Gruyter, vol. 3(2), pages 1-18, March.
    7. Ruccio, David F., 1991. "When failure becomes success: Class and the debate over stabilization and adjustment," World Development, Elsevier, vol. 19(10), pages 1315-1334, October.
    8. Korkut BORATAV, 2001. "2000-2001 Krizinde Sermaye Hareketleri," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 16(186), pages 7-17.
    9. Mathieu Dufour & Özgür Orhangazi, 2007. "International Financial Crises: Scourge or Blessings in Disguise?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 39(3), pages 342-350, September.
    10. Harvey, David, 2005. "The New Imperialism," OUP Catalogue, Oxford University Press, number 9780199278084.
    11. Agenor, Pierre-Richard & Jensen, Henning Tarp & Verghis, Mathew & Yeldan, Erinc, 2006. "Disinflation, fiscal sustainability, and labor market adjustment in Turkey," Policy Research Working Paper Series 3804, The World Bank.
    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. Sheida Teimouri, 2015. "Currency crises and dynamics of real wages," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 377-403, May.
    2. Mathieu Dufour & Özgür Orhangazi, 2016. "Growth and distribution after the 2007–2008 US financial crisis: who shouldered the burden of the crisis?," Review of Keynesian Economics, Edward Elgar Publishing, vol. 4(2), pages 151-174, April.
    3. Akhand Akhtar Hossain, 2015. "Central Banking and Monetary Policy in Muslim-Majority Countries," Books, Edward Elgar Publishing, number 14612.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mathieu Dufour & Özgür Orhangazi, 2016. "Growth and distribution after the 2007–2008 US financial crisis: who shouldered the burden of the crisis?," Review of Keynesian Economics, Edward Elgar Publishing, vol. 4(2), pages 151-174, April.
    2. repec:ilo:ilowps:467426 is not listed on IDEAS
    3. Yeldan, Erinc., 2011. "Macroeconomics of growth and employment : the case of Turkey," ILO Working Papers 994674263402676, International Labour Organization.
    4. Onaran, Özlem, 2015. "State and the economy: a strategy for wage-led development," Greenwich Papers in Political Economy 14075, University of Greenwich, Greenwich Political Economy Research Centre.
    5. Pierre Richard Agénor & Devrim Yilmaz, 2006. "The Tyranny of Rules: Fiscal Discipline, Productive Spending, and Growth," Economics Discussion Paper Series 0616, Economics, The University of Manchester.
    6. Özgür Orhangazi & A. Erinç Yeldan, 2021. "The Re‐making of the Turkish Crisis," Development and Change, International Institute of Social Studies, vol. 52(3), pages 460-503, May.
    7. Patricia M Martin, 2005. "Comparative Topographies of Neoliberalism in Mexico," Environment and Planning A, , vol. 37(2), pages 203-220, February.
    8. Spies-Butcher, Ben & Bryant, Gareth, 2024. "The history and future of the tax state: Possibilities for a new fiscal politics beyond neoliberalism," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 98(C).
    9. Arteta, Carlos & Hale, Galina, 2008. "Sovereign debt crises and credit to the private sector," Journal of International Economics, Elsevier, vol. 74(1), pages 53-69, January.
    10. Bhatt, Vipul & Liao, Mouhua & Zhao, Min Qiang, 2023. "Government policy and land price dynamics: A quantitative assessment of China’s factor market reforms," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    11. Ahmed, Abubakari & Kuusaana, Elias Danyi & Gasparatos, Alexandros, 2018. "The role of chiefs in large-scale land acquisitions for jatropha production in Ghana: insights from agrarian political economy," Land Use Policy, Elsevier, vol. 75(C), pages 570-582.
    12. Knudsen, Daniel C. & Rickly, Jillian M. & Vidon, Elizabeth S., 2016. "The fantasy of authenticity: Touring with Lacan," Annals of Tourism Research, Elsevier, vol. 58(C), pages 33-45.
    13. Christian A Belabed & Thomas Theobald & Till van Treeck, 2018. "Income distribution and current account imbalances [Notes on capacity utilisation, distribution and accumulation]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(1), pages 47-94.
    14. Sarah Ryser, 2019. "The Anti-Politics Machine of Green Energy Development: The Moroccan Solar Project in Ouarzazate and Its Impact on Gendered Local Communities," Land, MDPI, vol. 8(6), pages 1-21, June.
    15. Ross Beveridge & Philippe Koch, 2017. "The post-political trap? Reflections on politics, agency and the city," Urban Studies, Urban Studies Journal Limited, vol. 54(1), pages 31-43, January.
    16. Beatriz Bustos, 2015. "Moving on? Neoliberal continuities through crisis: the case of the Chilean salmon industry and the ISA virus," Environment and Planning C, , vol. 33(6), pages 1361-1375, December.
    17. Bradley R Wilson, 2013. "Breaking the Chains: Coffee, Crisis, and Farmworker Struggle in Nicaragua," Environment and Planning A, , vol. 45(11), pages 2592-2609, November.
    18. David Kyuman Kim & John L. Jackson Jr., 2011. "Introduction," The ANNALS of the American Academy of Political and Social Science, , vol. 637(1), pages 6-16, September.
    19. Janna Mai Nguyen & Dodo zu Knyphausen‐Aufseß, 2016. "The Role of Sovereign Ratings in M&A Markets: Empirical Evidence from Latin America and South East Asia," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 25(1), pages 5-48, January.
    20. Gérard Duménil & Dominique Lévy, 2014. "The crisis of the early 21st Century: Marxian perspectives," Chapters, in: Riccardo Bellofiore & Giovanna Vertova (ed.), The Great Recession and the Contradictions of Contemporary Capitalism, chapter 2, pages 26-49, Edward Elgar Publishing.
    21. Carol Upadhya, 2017. "Amaravati and the New Andhra," Journal of South Asian Development, , vol. 12(2), pages 177-202, August.

    More about this item

    Keywords

    : financial crisis; finance capital; IMF; external debt; precautionary cost; Turkey;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:7837. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.