Investigation on the Determinants of Turkish Export-Boom in 2000s

Ahmet Aysan and Yavuz Selim Hacihasanoglu

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the causes of Turkish export-boom after 2000 in the manufacturing sector. We mainly concentrate on cost and productivity aspects of the production in the manufacturing sector. Effects of productivity, wage and exchange rate are analyzed in the framework of the augmented unit labor cost model. Following the Edwards and Golub (2004) paper we use the dynamic panel data techniques for the analysis. In addition, the importance of the above mentioned factors is examined for the rising and declining sectors. We find that manufacturing export is negatively related to the unit labor cost (ULC). Decomposition of ULC into its two components also shows that an improvement in productivity increases export while an increase in nominal wages decreases it. We also find that nominal wage is an important factor in the declining sectors while productivity is the stimulus in rising sectors.

Keywords: Manufacturing export; unit labor cost; wage; productivity; real effective exchange rate (search for similar items in EconPapers)
JEL-codes: F14 F15 F16 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Investigation on the Determinants of Turkish Export-Boom in 2000s (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:5493

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