Relative Price and Technology Components of Import Liberalization in Turkey: 1973-1996

This paper studies the effects of Turkey’s switch from import substitution to import liberalization in 1980 on intermediate imports. The underlying input-output methodology involves two novelties: Firstly, backward import linkages are disaggregated to capture both origin and destination sector information. Secondly, the intertemporal change is decomposed into relative price and technology components. Aggregated input-output tables for 1973 and 1996 constitute the database. Relative prices are far from being uniform, yet their effects in general are very small compared to the technology component. Production became more dependent on imported inputs in general, leading export sectors (Agriculture, Textiles-Clothing, and Food-Beverages) inclusive.Publisher's Versio