Wage or Profit-Led Growth? The Case of Turkey

Ensar Yılmaz

Journal of Economic Issues, 2015, vol. 49, issue 3, 814-834

Abstract: I aim at contributing to the academic debate about the relationship between functional income distribution and economic growth in regard to the large and open economy of Turkey in the period from 1987 to 2006. To this end, I propose a simple post-Keynesian model, so as to test whether the Turkish economy is wage or profit-led. I find evidence that, while a rising wage has a positive effect on investment, it does not affect consumption in Turkey. Hence the combined effect of a rising wage share on domestic demand (investment plus consumption) is positive. However, since exports and imports are so sensitive to labor costs, as they are in the case of Turkey, the regime becomes profit-led.

Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00213624.2015.1072429 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:jeciss:v:49:y:2015:i:3:p:814-834

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MJEI20

DOI: 10.1080/00213624.2015.1072429

Access Statistics for this article

More articles in Journal of Economic Issues from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().