Structural adjustment and trade in Turkey: Investigating the alternatives "beyond export-led growth"

The article searches for a viable alternative for Turkey's economy to resolve its current confrontation with the dilemma of stabilization and growth. With the aid of a dynamic, computable, general equilibrium model, it is argued that an integrated, industrialization strategy that combines a domestic-demand-based, wage-goods-oriented public investment program with a selective export-promotion scheme promises to be the most appropriate one serving Turkey's long-term industrialization interests. The model results further emphasize the pressing need for the revitalization of the domestic demand and the importance of the agricultural productivity growth in promoting Turkey's overall objectives of industrialization, income equity, and foreign trade over the Fifth and Sixth Plan periods. © 1989

Turkey’s employment subsidy program under the great recession: a general equilibrium assessment

The objective of this paper is to provide an impact analysis of the macroeconomic consequences of the employment subsidization programs in Turkey implemented under the post-2008 crisis period. To this end, an applied general equilibrium model (of the computable general equilibrium–CGE variety) is utilized to investigate the production, incomes generation, and aggregate demand components of the domestic economy. The analysis highlights the rather limited returns to the subsidization package, and argues that much of this was due to the dis-equilibriating and fragile macroeconomic environment under the neoliberal policy framework. The massive drop of domestic savings; a severe mis-alignment in the real exchange rate causing significant appreciation of the domestic currency; rise of the external deficit and of foreign indebtedness along with a severe fall in the total productivity effort were different facets of this poor macroeconomic performance. Thus, an important message of the study is that, had the macroeconomic balances were maintained at their historical averages, and a more competitive exchange rate could have been pursued, as much as threefolds of a gain in aggregate employment could have been generated with the same intensity of the employment subsidization package, in comparison to the historically realized levels. © 2016 Informa UK Limited, trading as Taylor & Francis Group

The Impact of Financial Liberalization and the Rise of Financial Rents on Income Inequality: The Case of Turkey

This is the third of five country case studies on income inequality, and investigates the impact of financial liberalization and the rise of financial rents on income inequality in Turkey. The chapter has five sections: Introduction; Indicators of Income Distribution: The Evidence-a broad overview, and evidence on the patterns of income distribution in Turkey over the last three decades; Macroeconomic Adjustment under Financial Liberalization and the Rise of Financial Rents-a discussion of the evolution of functional categories of income that includes an account of the macroeconomic adjustment; The Rising Fiscal Gap and the Role of the State in Regulating the Distributional Structure-a detailed analysis of the rise in public sector deficits and the distributive consequences of the widening fiscal gap; and Concluding Comments and Overall Assessment. Sect. 3 looks at the inherent tensions caused by the macroeconomic disequilibria embodied in the process of integration with world markets under conditions of a poorly supervised banking system and underdeveloped and fragile domestic asset markets; here, it is found to be analytically convenient to decompose the path of Turkish liberalization after 1980 into two major subperiods partitioned by the strategic step of capital account deregulation-which took place in 1989 and was completed by the full integration of the domestic market into global financial markets. This section also studies the patterns of the wage cycle and productivity growth using quantitative filtering techniques, and reports on the disassociation of labour remunerations from the productivity gains in the real sphere of the economy. © United Nations University/World Institute for Development Economics Research (UNU/WIDER) 2004. All rights reserved

Economics of climate change and green employment: A general equilibrium investigation for Turkey

This paper quests for the intrinsic complementarities among environmental pollution abatement, induced technological innovation to combat human-induced climate change, targeted expansions for green employment, and enhanced welfare through gains in private income. Utilizing data from the Turkish economy, we implement an applied general equilibrium model to study the synergies between environmental abatement instruments and policies towards sustaining green jobs. Our results are indicative that by a proper mix of environmental taxation and technological and institutional innovations, Turkey can serve as an example for a host of developing countries in setting the stage for a pro-employment and eco-friendly, sustained growth path. We further show that for the successful implementation of a carbon emissions mitigation strategy, elimination of the burden of existing labor taxes and factor market distortions are crucial. Our analysis suggests that complemented with a strategy of substitution of environmental taxes against the existing distortionary labor taxes, costs abatement on domestic income and employment could be negligible. � 2017 Elsevier Lt

Environmental impacts of coal subsidies in Turkey: A general equilibrium analysis

In this study we aim at providing an analytical framework for Turkey to study the macroeconomics and environmental impacts of the existing coal subsidization scheme. To this end we develop a regionally differentiated applied general equilibrium model spanning over 2015-2030. Our analytical apparatus focuses exclusively on the fiscal implications as well as the environmental repercussions of the removal of the subsidies on greenhouse gas emissions. With the aid of a set of alternative policy scenarios against a "business as usual" path, we study the regional and sectorial performances of growth, employment, investment and capital accumulation, consumption/welfare and trade balance. Our results indicate that by simple elimination of the coal subsidization scheme, Turkey can reduce its aggregate gaseous emissions by as much as 5% without a significant loss in its GDP. © 2015 Elsevier Ltd

Beyond inflation targeting: Assessing the impacts and policy alternatives

[No abstract available

A general equilibrium assessment of twin-targeting in Turkey

[No abstract available

Agriculture and trade liberalization in the MENA region: Dynamic impacts of future scenarios

[No abstract available

Financial liberalization and fiscal repression in Turkey: Policy analysis in a CGE model with financial markets

The effects of recent Turkish financial liberalization reforms on the real economy are investigated with the aid of a computable general equilibrium model that incorporates financial markets. The model is used for conducting counterfactual and comparative static simulation experiments to analyze three sets of issues: (1) the real side effects of the government's mode of financing its fiscal deficit through debt instruments or monetization; (2) the effects of deregulation of the public debt instrument issuing rules on the financial markets; and (3) the domestic implications of the continued external debt servicing and the foreign exchange rate devaluations. © Society for Policy Modeling, 1997

Country case studies : Turkey

In IDL-1468