Privatization and regional distribution of manufacturing in Turkey

The state owned enterprises were crucial in the early stage of industrial development in Turkey. They were producer of basic consumption goods and contributed the building the entrepreneurial understanding, and hence the development of the private sector. State owned enterprises have played key role in almost all sectors of the Turkish economy, including manufacturing sectors and various infrastructural facilities. After 1980, the radical transformation has occurred in Turkish economic policies: The reform process included not only financial liberalization and trade reforms, but also the privatization of the state owned enterprises. Initially, starting from the second half of 1980s, international organizations have advocated privatization as a “must” policy tool. The paper explores the effects of privatization on regional growth of Turkish manufacturing. The analyses are carried out at regional basis in order to detect to what extent the public sector is complement to or substitute of the private sector. The findings show that privatization has no perverse effects on the development of the manufacturing activities in the traditional and new industrial zones. However, its effects are in opposite directions in the poor regions.Industrial policy, privatization, State Owned Enterprises, spatial distribution of manufacturing, shift-share analysis.

Market Potential and Regional Disparities in Turkey

Regional disparity is one of the important characteristics of Turkish economy. The paper focuses on the explanatory power of market potential on the regional differences in Turkey. Regional divergences in wages and employment are used as the proxies for regional differences. Empirical results reveal that, under various specifications, variation in market potential is an important determinant of regional differences.

Privatization and regional distribution of manufacturing in Turkey

The state owned enterprises were crucial in the early stage of industrial development in Turkey. They were producer of basic consumption goods and contributed the building the entrepreneurial understanding, and hence the development of the private sector. State owned enterprises have played key role in almost all sectors of the Turkish economy, including manufacturing sectors and various infrastructural facilities. After 1980, the radical transformation has occurred in Turkish economic policies: The reform process included not only financial liberalization and trade reforms, but also the privatization of the state owned enterprises. Initially, starting from the second half of 1980s, international organizations have advocated privatization as a must policy tool. The paper explores the effects of privatization on regional growth of Turkish manufacturing. The analyses are carried out at regional basis in order to detect to what extent the public sector is complement to or substitute of the private sector. The findings show that privatization has no perverse effects on the development of the manufacturing activities in the traditional and new industrial zones. However, its effects are in opposite directions in the poor regions

Price Convergence and Globalization: Evidence from Selected Countries

MENA countries have been confronted with major social, economic and political changes during the last two decades. During this period some emerging countries and transition economies also experienced similar transformation at varying degrees. The transformation of the economic system has affected not only relative domestic prices but also the gap between domestic and international price levels. The paper focuses on how deviation of domestic prices from international market prices is affected by openness in the selected countries. The difference between domestic and international price level is calculated by employing purchasing power parity (PPP). The factors that may have an effect on domestic-foreign price differences other than openness also are considered as control variables of the empirical analyses

Macroeconomics of Turkey's agricultural reforms: an intertemporal computable general equilibrium anlaysis

Cataloged from PDF version of article.Turkey recently launched a set of structural reforms to address elimination of producer price subsidies in its agriculture, and replacing them with a targeted direct income transfer program. The paper investigates analytically viable options of the proposed agricultural-cum-fiscal reform and analyzes the formal links between the public sector fiscal balances, accumulation patterns, dynamic resource allocation, and consumer welfare under a medium-long-term horizon. We utilize a dynamic general equilibrium model. The model results suggest that even though there are expected modest welfare gains of consumers' intertemporal efficiency, the repercussions of these policies on the rural economy and aggregate gross domestic product are likely to be deflationary. (C) 2003 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved

Regional convergence in Turkey: the role of government in economic environment augmenting activities

Regional disparities are important concerns for the researchers as well as the policy makers in both developed and developing countries. The government, as a leading actor in regional policies, can create externalities through investments not only in the real sectors, but also in infrastructure and institutions. Investments in education, health and transportation enhance the quality of life and business environment, and trigger the development in those regions. The paper defines this type of government role in a particular region as “economic environment augmenting activities of the government”. The paper focuses on two types of initiatives of the government: regional universities and the existence of an airport. The main findings show that spending impact suppresses knowledge impact in the low income provinces. And, there is a threshold for the regional income level: The demand effect of government initiatives as state university and providing air transport has greater impact in low-income provinces, particularly before 2000.Regional convergence; role of government; effects of universities; panel-data modeling; Turkey

Market Potential and Regional Disparities in Turkey

Regional disparity is one of the important characteristics of Turkish economy. The paper focuses on the explanatory power of market potential on the regional differences in Turkey. Regional divergences in wages and employment are used as the proxies for regional differences. Empirical results reveal that, under various specifications, variation in market potential is an important determinant of regional differences