Demand-Pull and Cost-Push Effects on Labor Income in Turkey, 1973–90

Erik Dietzenbacher and Gülay Günlük-Şenesen
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Gülay Günlük-Şenesen: Faculty of Political Sciences, Istanbul University, Beyazit 34452, Istanbul, Turkey

Environment and Planning A, 2003, vol. 35, issue 10, 1785-1807

Abstract: In this paper we attempt to assess the changes in the Turkish production structure, and labor income in particular, between the 1970s and the 1990s. During this period a shift has taken place from an inward-looking policy towards an outward-oriented one. For our analysis we use two partially closed (or extended) input–output models. The demand-driven model is traditional for this type of analysis and examines the effects of a demand pull (for example, an increase in exports). For an open economy, however, it is not only important to investigate the effects of a demand pull, but also to examine how a cost push (for example, an increase in import prices) affects total gross output, value added, or labor income, for example. To study the effects of a cost push we introduce the partially closed supply-driven input–output model. Instead of analyzing the effects of a specific exogenous demand pull or cost push, we focus on various types of multiplier.

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:35:y:2003:i:10:p:1785-1807

DOI: 10.1068/a35302

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