Ankara : The Department of Management and Graduate School of Business Administration of Bilkent Univ. , 1990.Thesis (Master's) -- Bilkent University, 1990.Includes bibliographical references leaves 44-45.The main purpose of this study is to examine emiprically
whether or not devaluation could be relied upon as a means fo r
correcting the balance of payments deficits in Turkey. The time
period is the years between 1968-1984.
In this study, an international trade model for Turkey is
established to find out price and income elasticities of import and
export demands. Restricted form of Marshal 1-Lerner condition
(Harberger condition) is applied to see the effectiveness of
devaluation. Import and export demands functions are estimated by
both Ordinary Least Square and Two Stage Least Square methods to
see how Turkey's case fits into the methodological controversy.
Another issue considered is the choice between static and dynamic
formulations of the export and import functions.
It is found that import demand of Turkey is income elastic but
price inelastic, whereas export demand for Turkey is elastic both
w ith respect to the relative prices and income. Devaluation con be
used as an effective tool in correcting the balance of payments in
Turkey according to the study’s findings.Öztürk, ZeynepM.S