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Demand Regime of Turkey: A Post-Keynesian Econometric Analysis

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  • Anıl BÖLÜKOĞLU

Abstract

The aim of this study is to analyse, from a Post-Keynesian perspective, how factor income distribution affects growth potential of Turkey. To do this, the study estimates Turkey’s demand regime between 1998-2018 by using quarterly data on the basis of the model developed by Bhaduri and Marglin (1990) and through the empirical approach of Naastepad (2006). According to the results of the study, the demand regime of Turkey is found to be wage-led. In other words, positive effect of the expansion in consumption expenditures on economic growth triggered by increased wage shares is found to be greater than its contractionary effects on investment and export. According to the empirical results, it is argued that pro-labor economic policies would make positive contribution to economic growth in Turkey.

Suggested Citation

  • Anıl BÖLÜKOĞLU, 2019. "Demand Regime of Turkey: A Post-Keynesian Econometric Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    • Handle: RePEc:sos:sosjrn:190409
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    More about this item

    Keywords

    Growth; Functional Income Distribution; Post-Keynesian Economics.;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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