Entry, Exit and Productivity in Turkish Manufacturing Industries
Turkey pursued an import-substitution based development strategy over the period 1960–1980, just as many other developing countries did during this period. This period came to an abrupt end following the severe balance of payments crisis in the late seventies. She then introduced a number of structural reforms in the year 1980 which led gradually to greater trade openness, liberalization of input and product markets, financial liberalization and finally liberalization of the capital account. Emphasis during the early years of the program was on encouraging exports through various direct and indirect incentives (through export tax rebates, preferential export credits, foreign exchange allocations and duty-free access to imports).
Some steps were taken towards elimination of import barriers during the period 1980–1983 and radical reforms were implemented after 1984 in order to liberalize import regime. First, quantitative restrictions on imports were rapidly phased out, and these changes in quantitative restrictions have resulted in considerable elimination of trade barriers. Second, significant reductions in tariff rates, especially on imports of intermediate and capital goods were implemented in the late 1980s and early 1990s. Although tariffs on certain goods (for example, consumer goods) were increased temporarily after the elimination of quantitative restrictions, this did not lead to an increase in the overall nominal protection rates, because imports of the low share of these goods in total imports before 1984.
KeywordsProductivity Growth Exit Rate Tariff Rate Entry Rate Incumbent Firm
- Churchill B (1955) Age and life expectancy of business firms. Surv Curr Bus 35(12):15–19Google Scholar
- Gonenç R, Leibfritz W, Yilmaz G (2007) Enhancing Turkey’s growth prospects by improving formal sector business conditions. Economics Department Working Papers No. 542, OECD, ParisGoogle Scholar
- Kaya C, Ucdogruk Y (2002) The Dynamics of Entry and Exit in Turkish Manufacturing Industry. Middle East Technical University, Ankara, ERC Working Papers in Economics 02/02Google Scholar
- Kose AH, Pamukçu T (2005) Economie grise. In: Vaner S (ed) La Turquie, Fayard Editions, pp. 317–350Google Scholar
- Pamukçu T, Bertinelli L, Strobl E (2007) Technology spillovers due to foreign ownership and productivity of domestic firms: analyzing the evidence. Selected Papers from the 13th International Conference of ERF, Economic Research Forum, Egypt, pp. 187–230Google Scholar
- Taymaz E, Yilmaz K (2007) Productivity and trade orientation: turkish manufacturing industry before and after the customs union. J Int Trade Diplomacy 1:127–154Google Scholar
- World Bank W (2006) Doing Business 2006. World Bank, Washington, DCGoogle Scholar
- World Bank (2007) Turkey. Investment Climate Assessment. two volumes, World Bank, Washington, DCGoogle Scholar