An Analytical Evaluation of the Impact of Openness on Economic Performance: A Three Sector General Equilibrium Open Economy Model

Openness, Economic Reform, General Equilibrium, Sectoral Interactions

Persistence of Profitability and the Dynamics of Competition in Turkey, 1985-2004

The existing empirical literature on the intensity of competition in developing countries shows that the persistence of profitability is smaller in developing than in advanced economies. To solve this controversy, Glen, Lee and Singh (2003) propose to look into the underlying sources of the persistency, namely persistency of monopoly power and of economic efficiency. This paper reports on time series analysis of the persistence of corporate profitability and its constituent parts for the largest 114 manufacturing firms in Turkey. Its central result is that the observed persistency of profits in the markets is due to persistency of productivity rather than the persistency of profit margins suggesting that pro-competitive characteristics of markets overweigh the inimical competition characteristics in Turkey.Persistence of profitability,Economic efficiency

TÜRKİYE’NİN DIŞA AÇILMA ORANININ ÖLÇÜMÜ, 1965-1995

The results of empirical studies on the 1980 Turkish economic reform programme frequently suggest that openness has a positive impact on growth in Turkey. However, the results of empirical literature on the relationship between openness and growth have always been under criticism for using openness variables,which are not objective measures of openness, involve measurement errors and do not capture all dimensions of openness. To overcome these criticisms, in this article,we introduce a composite openness proxy obtained using the principle component methodology that captures all dimensions of openness and provide an objective and more reliable measure of openness for Turkey.Openness, Measuring openness, Principle component method

International Tourism Demand for Turkey: A Dynamic Panel Data Approach

Empirical studies on tourism field for Turkey have illustrated little attention in modelling properly the demand function for tourism and identifying the main basis of tourism flows. The majority of studies take into consideration the demand side determinants of tourism, usually proxies by income and price measurements, and little attention has been given to the supply factors, which might influence substantially the tourism performance. Factors such as infrastructures in networks and accommodation capacity in the hosting country have been ignored in such studies. Taking into accounts these facts, in this paper, a dynamic model is used to estimate the demand function of tourism in Turkey with respect to its nine major clients, Germany, Russia, United Kingdom, Holland, France, Austria, Iran, Bulgaria and Ukraine, for a period of 10 years (1995-2004) by using the GMM-DIFF estimator proposed by Arellano and Bond (1991). One of the main conclusions of the study is the significant value of the lagged dependent variable (0.28), which may be interpreted as a minor word-of-mouth effect on the consumer decision in favour of the destination.Tourism Demand, GMM-DIFF, Turkey

Energy Consumption and Economic Growth in Turkey: Cointegration and Causality Analysis

This paper examines the causal relationship between energy consumption and economic growth for Turkey during 1971–2006. We employed two multivariate models, namely demand model and production model, based on vector error correction model. Then, we tested Granger causality after finding cointegration among variables for the both models. The results indicate that energy consumption and economic growth are cointegrated and there is bidirectional causality running from energy consumption to economic growth and vice versa. This means that an increase in energy consumption directly affects economic growth and that economic growth also stimulates further energy consumption. Consequently, we conclude that energy is a limiting factor to economic growth in Turkey and, hence, shocks to energy supply will have a negative impact on economic growth and vice versa.Energy consumption, Economic growth, Causality, Cointegration, Turkey

Quantifying International Openness in Turkey, 1965 - 1995

Türkiye’de 1980’de gerçekleştirilen ekonomik reformlar üzerine yapılan kantitatif çalışmalar genellikle dışa açılmanın büyüme üzerinde pozitif etki yaptığı sonucuna varmışlardır. Fakat, bu konuda elde edilen ampirik bulgular, analizlerde kullanılan dışa açılma endeklerinin objektif bir ölçüsünün olmadığı, ölçme hataları içerdiği ve dışa açılmanın bütün yönlerini kapsamadığı gerekçeleriyle literatürde sıkça eleştirilmişlerdir.Bu makale ,Ana Bileşenler Analizi kullanılarak oluşturulacak karma bir dışa açılma endeksinin, literatürde yapılan eleştirileri büyük ölçüde ortadan kaldırabileceğini göstermektedir. Zira bu karma endeks, dışa açılmanın farklı boyutlarını bir araya getirdiğinden, Türkiye ekonomisi için dışa açılmanın objektif ve güvenilir bir ölçüsü olarak ampirik çalışmalarda kullanılabilir.The results of empirical studies on the 1980 Turkish economic reform programme frequently suggest that openness has a positive impact on growth in Turkey. However, the results of empirical literature on the relationship between openness and growth have always been under criticism for using openness variables, which are not objective measures of openness, involve measurement errors and do not capture all dimensions of openness. To overcome these criticisms, in this article, we introduce a composite openness proxy obtained using the principle component methodology that captures all dimensions of openness and provide an objective and more reliable measure of openness for Turkey

Quantifying International Openness in Turkey, 1965 - 1995

Türkiye’de 1980’de gerçekleştirilen ekonomik reformlar üzerine yapılan kantitatif çalışmalar genellikle dışa açılmanın büyüme üzerinde pozitif etki yaptığı sonucuna varmışlardır. Fakat, bu konuda elde edilen ampirik bulgular, analizlerde kullanılan dışa açılma endeklerinin objektif bir ölçüsünün olmadığı, ölçme hataları içerdiği ve dışa açılmanın bütün yönlerini kapsamadığı gerekçeleriyle literatürde sıkça eleştirilmişlerdir.Bu makale ,Ana Bileşenler Analizi kullanılarak oluşturulacak karma bir dışa açılma endeksinin, literatürde yapılan eleştirileri büyük ölçüde ortadan kaldırabileceğini göstermektedir. Zira bu karma endeks, dışa açılmanın farklı boyutlarını bir araya getirdiğinden, Türkiye ekonomisi için dışa açılmanın objektif ve güvenilir bir ölçüsü olarak ampirik çalışmalarda kullanılabilir.The results of empirical studies on the 1980 Turkish economic reform programme frequently suggest that openness has a positive impact on growth in Turkey. However, the results of empirical literature on the relationship between openness and growth have always been under criticism for using openness variables, which are not objective measures of openness, involve measurement errors and do not capture all dimensions of openness. To overcome these criticisms, in this article, we introduce a composite openness proxy obtained using the principle component methodology that captures all dimensions of openness and provide an objective and more reliable measure of openness for Turkey

The impact of customs union on firm productivity convergence

Economic integration theory suggests that each member benefits from establishing a customs union; because the country that has relatively lower income will grow faster than the others, income and growth rates of all member countries will be equalised in the long-run. However, endogenous growth models show that this result depends on whether the level of technology transfer among member countries gets faster or not following the completion of integration. If the rate of technology transfer from an advanced member country (leader) in terms of the level of technology and income to the less advanced member (follower) increases following integration, the rate of growth and productivity of the follower increase, resulting in an equalisation of incomes and productivity convergence among member countries. In such a case that no technology transfer occurs among member countries, each member of the union reaches to their own steady states conducive to their technological and structural characteristics and therefore integration would not lead to convergence. For this reason, in order to determine whether integration will lead to productivity convergence, it is vitally important to uncover the determinants of productivity convergence for preparing economic policy packages which help to exploit the highest gains from integration.Gümrük Birliği, Verimlilik Yakınsaması

TÜRKİYE’NİN DIŞA AÇILMA ORANININ ÖLÇÜMÜ, 1965-1995

The results of empirical studies on the 1980 Turkish economic reform programme frequently suggest that openness has a positive impact on growth in Turkey. However, the results of empirical literature on the relationship between openness and growth have always been under criticism for using openness variables,which are not objective measures of openness, involve measurement errors and do not capture all dimensions of openness. To overcome these criticisms, in this article,we introduce a composite openness proxy obtained using the principle component methodology that captures all dimensions of openness and provide an objective and more reliable measure of openness for Turkey

GUMRUK BIRLIGI’NIN FIRMA VERIMLILIK YAKINSAMASINA ETKISI

Economic integration theory suggests that each member benefits from establishing a customs union; because the country that has relatively lower income will grow faster than the others, income and growth rates of all member countries will be equalised in the long-run. However, endogenous growth models show that this result depends on whether the level of technology transfer among member countries gets faster or not following the completion of integration. If the rate of technology transfer from an advanced member country (leader) in terms of the level of technology and income to the less advanced member (follower) increases following integration, the rate of growth and productivity of the follower increase, resulting in an equalisation of incomes and productivity convergence among member countries. In such a case that no technology transfer occurs among member countries, each member of the union reaches to their own steady states conducive to their technological and structural characteristics and therefore integration would not lead to convergence. For this reason, in order to determine whether integration will lead to productivity convergence, it is vitally important to uncover the determinants of productivity convergence for preparing economic policy packages which help to exploit the highest gains from integration