A macroeconomic analysis of agricultural terms of trade in Turkey, 1952-90

Cihan Bilginsoy

Journal of Development Studies, 1997, vol. 33, issue 6, 797-819

Abstract: A two-sector model of terms of trade (TOT) determination is developed and tested using time-series data for Turkey. Empirical results support the structuralist 'flex-price agriculture fix-price industry' models. TOT is found to be sensitive to changes in nominal demand and the exchange rate. Rising nominal demand turns the TOT in favour of the agricultural sector provided that there are no supply constraints in the industrial sector. If industrial supply is constrained by import bottlenecks, then aggregate demand expansion turns the TOT in favour of the industrial sector. Devaluation turns the TOT against the agricultural sector primarily via the cost-push factors in the industrial sector.

Date: 1997
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00220389708422496 (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:taf:jdevst:v:33:y:1997:i:6:p:797-819

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220389708422496

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

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