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Export Policies and Export Performance: The Case of Turkey

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  • Ercan Uygur

    (Faculty of Political Sciences, Ankara University)

Abstract

The primary purpose of this paper is to make a comparative evaluation of export policies pursued in Turkey during the period from the late 1970s to mid 1990s. In this context the effects of exchange rate policies, export promotion schemes and domestic demand policies are examined. In doing so, the paper attempts to answer, among others, the following question. Do these policies differ in terms of their long term and short term effects? Together with a comparative evaluation of export policies, the answer to this question is given on the basis of long run and short run estimation results of an export supply equation. Long run estimation of the supply equation is done by Johansen?s multivariate cointegration methodology. Short run estimation of the same equation is done by taking into account an error-correction term. In the short term estimation, real exchange rate, investment, excess demand and export subsidies contribute significantly to the explanation of export supply with correct signs. In the long term estimation, similar results are found, with the exception that export subsidies turn out to have a negative effect on export supply. It is explained that the temporary positive effect of subsidies becomes negative in the long-run due to uncertainty not only in exchange rate and demand policies but also in the subsidies themselves.

Suggested Citation

  • Ercan Uygur, 1997. "Export Policies and Export Performance: The Case of Turkey," Working Papers 9707, Economic Research Forum, revised 06 May 1997.
    • Handle: RePEc:erg:wpaper:9707
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    Cited by:

    1. Ebru Voyvoda & A. Erinc Yeldan, 2001. "Patterns of Productivity Growth and the Wage Cycle in Turkish Manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(4), pages 375-396.
    2. Ahmet Ihsan Kaya & Cumhur Çiçekçi, 2023. "Structural transformation and sources of growth in Turkey," WIDER Working Paper Series wp-2023-71, World Institute for Development Economic Research (UNU-WIDER).
    3. Özler, Sule & Taymaz, Erol & YIlmaz, Kamil, 2009. "History Matters for the Export Decision: Plant-Level Evidence from Turkish Manufacturing Industry," World Development, Elsevier, vol. 37(2), pages 479-488, February.
    4. Gulbin Sahinbeyoglu & Bulent Ulasan, 1999. "An Empirical Examination of the Structural Stability of Export Function : The Case of Turkey," Discussion Papers 9907, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    5. Evren Erdogan Cosar, 2002. "Price and Income Elasticities of Turkish Export Demand : A Panel Data Application," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 2(2), pages 19-53.

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