Economic Performance Of Turkey Research Articles

Stabilization of the Turkish Economy in the Early 2000s and the Urgent Action Plan

This article discusses the stabilisation of the Turkish economy in the early 2000s, with a focus on the Urgent Action Plan (AEP) implemented by the Justice and Development Party (AKP). The AEP aimed to bring about real structural changes in Turkish economic governance, accelerate privatization, provide capital to certain productive sectors, and increase financial discipline, resulting in the radical decline of public debt. The article explores the success of the AEP and the impact of the AKP's economic policies on the country's growth, as well as the role of globalization and the European Union in the transformation of the Turkish economy. Finally, the article discusses the political communication surrounding the AEP and the international recognition of Turkey's economic performance during this period.

Central Bank Independence and Economic Performance in Caucasus and Central Asian Countries

This paper explores the association of both central bank independence (CBI) and financial market development with the economic performance of Turkey together with six former centrally planned former Soviet Union countries located in Caucasus and Central Asia (CCA countries). First, we construct a legal independence index (LVAW) for central banks. Then, we analyze the relationship between central bank independence and macroeconomic variables. Our findings suggest that there is a positive correlation between central bank independence and GDP growth, whereas the sign of correlation between CBI and GDP deflator is negative. Besides, the economies with higher level of financial deepening are also associated with high CBI.

The impact of terrorism on economic performance: The case of Turkey

We apply the terrorist attack vulnerability evaluation model (TAVE-Model) to evaluate the effect of terrorism on the economic performance of Turkey. We examine both the short run and long-run economic impact of terrorist attacks in Turkey. The TAVE-Model deploys a number of indicators to evaluate the economic impact. The indicators are economic desgrowth (-δ), intensity of terrorist activities (αi), terrorist attack losses (-π), economic wear (Π), level of terrorist attack tension (ζ), level of terrorist attacks monitoring (η), and total economic leaking (Ωt) under a terrorist attack. The basic underlying idea of TAVE-Model is that the economic impact of a terrorist attack depends on a country’s vulnerability to attacks from domestic and international terrorist groups. The application of a model to Turkey is highly topical in light of the spate of terrorist attacks the country suffered in recent years. The results of TAVE-Model confirm that economic leaking, economic desgrowth, and economic wear has increased between 1990 and 2016. The issue of terrorism in Turkey is multidimensional, and tackling it requires an effective social assistance program as well as a stronger and impartial justice system. These reforms will render poorer Turks less vulnerable and increase the opportunity cost of terrorism.

The Impact of Terrorism on Turkey's Economic Performance from 1990 to 2016

This research work applies the terrorist attack vulnerability evaluation model (TAVEModel) to evaluate the effect of terrorism on the economic performance of Turkey. We examine both the short run and long-run economic impact of terrorist attacks in Turkey. The TAVE-Model applies a number of indicators to evaluate the economic impact. The indicators are economic desgrowth (-δ), intensity of terrorist activities (αi), terrorist attack losses (-π), economic wear (Π), level of terrorist attack tension (ζ), level of terrorist attacks monitoring (η), and total economic leaking (Ωt) under a terrorist attack. The idea of TAVE-Model is that the economic impact of a terrorist attack depends on a country’s vulnerability to attacks from domestic and international terrorist groups. The application of a model to Turkey is highly topical in light of the spate of terrorist attacks the country suffered recently. The results of TAVE-Model confirms that economic leaking, economic desgrowth, and economic wear has increased from the 1990s to 2016. The issue of terrorism in Turkey is multidimensional, which requires an effective social assistance program as well as a stronger and impartial justice system, that will render poorer Turks and will increase the opportunity cost of terrorism.

The Institutional Fundamentals of Turkey's Economic Performance: A New Institutional Perspective

Abstract. In this thesis, the effect of Turkey's institutional structure on economic performance is analyzed by using transaction cost and credible commitment which are contributed by New Institutional Economics. According to this school, neoclassical economics ignores transaction cost, bounded rationality, incomplete contracts and property rights. So these models will not represent the real world. But it's known that the transaction cost is always positive in the real world. According to this reality, to begin with the institutions containing the New Institutional Economics are investigated and the relationship between institutions and economic performance is explained. Afterwards defining, measuring and effects of transaction cost topics are mentioned. Soon after we handled the political transaction cost. In the next chapter, the policymaking process and credible commitment are explained. The role of institutions on formation of institutional policies and the 3 determiner legislative-executive-judiciary and the seperation of powers are discussed and credible commitment is clarified in this context. By giving the theoretical framework of this issues, Turkey's progress is reviewed. The important contribution of this thesis is by following New Institutional Economics perspective, first defining the political transaction cost and credible commitment and after showing the effects Turkey's institutional structure to economic performance by using time series analysis with structral breaks. Findings indicate that the transaction cost and credible commitment determined by institutional structure are highly important on investment decisions and national income. Anahtar Kelimeler: New Institutional Economics, Transaction Cost, Credible Commitment, Institutional Structure, Structral Breaks, Co-integration. Keywords. New Institutional Economics, Transaction Cost, Credible Commitment, Institutional Structure, Structral Breaks, Co-integration. JEL. B15, B25, B52, D23, L14. Highlights * Turkiye’de kurumsal yapinin ekonomik performans uzerine etkisi incelenmistir. * Kurumlar, islem maliyeti, politik surec ve guvenilir taahhude iliskin literatur taranmistir. * ICRG’den temin edilen verilerle es-anli ve yapisal kirilmali esbutunlesme analizi uygulanmistir. * Sonuc olarak Turkiye’de kurumsal yapi, ekonomik performans uzerinde onemli derecede etkilidir.

Comparing the Effect of Global Crisis 2008 on the Economic Performance of Turkey with EU Member States: Factor Analysis and TOPSIS Application

The purpose of this study is to rank Turkey and EU member states according to their economic performances and generally analyse the structure of this ranking pre-crisis, crisis period, and post crisis periods in 2008. The data received in the time period between 2006 and 2012 are used within the scope of this study, 6 economic indicators are based, and the economic performance of Turkey is compared with the performance of European Union member states by using Factor Analysis and TOPSIS method. In the introduction, the information about economic crises is given and the reasons behind the Global Crisis in 2008 are examined by explaining the crisis itself in the following sections and the effects of the crisis on Turkey are summarised. In the second section of the study, the works reached as a result of reviewing the literature are found, and the importance, purpose and scope of the study are explained and the information about the data set used is provided in the third section. The information related to the Factor Analysis used in the study and the TOPSIS method is provided in the fourth section. The fifth section under the heading of Empirical Findings is death into two separate sub headings. In the first sub heading, the findings of Factor Analysis from multivariate statistical analysis techniques and in the other sub heading, the findings of TOPSIS are included. The relevant findings are interpreted. In the conclusion section, the findings acquired as a result of Factor Analysis and TOPSIS techniques applications are evaluated comparatively, and the results are examined in terms of Turkey and periods (pre-crisis, crisis period, and post crisis).

Turkey's experience with neoliberal policies since 1980 in retrospect and prospect

AbstractThis paper provides a critical assessment of Turkey's economic performance under the neoliberal economic policies which have been instrumental in generating a profound transformation in its socioeconomic structure since 1980. The paper draws special attention to the government's loss of policy autonomy and the democratic deficit at the initial and implementation stages of this transformation. It then evaluates Turkey's economic performance on the basis of indicators with medium and long-term impacts, such as investment, saving, industrialization, unemployment, and income distribution. This assessment shows that the neoliberal model has failed to fulfill its promises, with the Turkish economy failing to achieve performance equal to that under the previous import-substitution strategy or in comparable countries. The paper then identifies the main problem areas confronting the economy: the current account deficit, the labor market, insufficient industrial progress and income distribution, and poverty. To solve these problems, it calls for both a radical rethinking of the neoliberal policy regime and for proactive state intervention to stimulate saving and investment as part of a new development strategy, giving primary importance to industrialization, employment creation, and more equitable income distribution.

The effect of foreign income on economic performance of a small-open economy: evidence from Turkey

The effect of a shock in the foreign economic performance on the domestic economy is an attractive research area. It has consistently been found that this effect is non-negligible. However, the countries examined are mostly developed countries. In this study, the effects of a shock in foreign economy on the economic performance of Turkey are examined. The estimates suggest that a positive shock in the foreign economy positively affects Turkish output, increases the inflation rate, and appreciates the real exchange rate.

EFFECTS OF THE REAL EXCHANGE RATE ON OUTPUT AND INFLATION: EVIDENCE FROM TURKEY

This paper assesses the effects of real depreciation on the economic performance of Turkey by considering quarterly data from 1987:I to 2001:III. The empirical evidence suggests that, contrary to classical wisdom, the real depreciations are contractionary, even when external factors like world interest rates, international trade, and capital flows are controlled. Moreover, the results obtained from the analyses indicate that real exchange rate depreciations are inflationary.

An Evaluation of the Economic Performance of Turkey in the 1930s Based on Late-Ottoman Economy

The typical view of the Turkish economy in the 1930s generally has been that it not only performed well while coping with the hardship brought about by the Great Depression, but that it also received a big boost from the state's industrialization program. This usually has been characterized as the success of the economic policies implemented by the new republic in the 1930s. These policies have been considered successful because the young republic not only recovered from the wounds it suffered during the turbulent transition period from the Ottoman Empire, but it also began to realize considerably higher growth rates-mainly in industry, but also across the national economic spectrum.

The economic performance of the Turkish Republic

On 29 October 1923, Turkey emerged as a republic following the destruction of the Ottoman Empire in World War I. At the time it was a low-income, underdeveloped country. Since then it has evolved into a semiindustrialized, 'middle-income' nation that is among the most economically advanced countries of the Middle East, its oil-importing status notwithstanding. At the same time, its economic advance has, of course, been flawed. Given this record, it is worthwhile to summarize the nature of Turkey's economic performance in the interim 60 years. Much of the attention in this paper is directed to Turkey's growth. Among other things, consideration is given to the roles of the public and private sectors in the country's economic advance. Thereupon, the paper discusses other aspects of Turkey's economic performance, such as its balance of payments position or its inflation. Finally, the paper offers some conclusions regarding Turkey's overall economic performance. During the 1920s and 1930s, Turkey was fortunate to have as its leader the great Mustafa Kemal, later surnamed Ataturk. Heir to the Ottoman tradition of state intervention in economic activity, witness to the state economics' of the young Turks, committed to the idea of Turkish economic growth, Mustafa Kemal was undoubtedly prepared to use government to ignite his country's economy. During the 1920s, however, he required a cooperative and viable business sector while he turned his attention to the most pressing needs of the time, namely the introduction of various social reforms, most of them designed to promote the secularization of the new nation. Hence, Kemal's government initially made little attempt to alter the composition of output or the distribution of income. According to a comparatively recent study, Turkey during 1923-9 was the epitome of a peripheral or dependent economy which possessed an agricultural base, engaged in internal and external trade, and exported 'primary' commodities and imported manufactured items, including even textiles.2 The modest legislative efforts to assist private industry during the decade included the exemption from duty payments of raw materials used by export industries (1924), various tax and duty exemptions as well as subsidies for the sugar industry (1925) and the rather celebrated Law for the Encouragement of Industry (1927), which offered incentives to private industrial firms to expand by affecting the costs and availability of their inputs and their profits after taxes.3 These measures tended to be abortive, in no small part because the required inputs and markets were still too scarce and profits in industry still too uncertain to allow a substantial industrial advance. All told, during the 1920s Turkey experienced some economic growth but with very little structural change.4 By the end of the decade, the introduction of the social reforms had largely been completed and the Great Depression had begun, thereby