Entry, Exit and Productivity in Turkish Manufacturing Industries

  • Teoman Pamukçu
  • Khalid Sekkat
  • Erol Taymaz


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.


Productivity Growth Exit Rate Tariff Rate Entry Rate Incumbent Firm 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Teoman Pamukçu
    • 1
  • Khalid Sekkat
    • 2
  • Erol Taymaz
    • 1
  1. 1.The Middle East Technical UniversityAnkaraEgypt
  2. 2.The Economic Research ForumBruxellesEgypt

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