Foreign trade and its relation to competition and productivity in Turkish industry

Faezeh Foroutan

No 604, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines how the reform of the trade regime in Turkey during the 1980s has affected the performance and competitiveness of the Turkish industrial sector. It was found that trade liberalization and more exposure to international competition generally benefited Turkish industry in the 1980s. But the effect of international competition appears to have been felt mainly in the private sector - especially in tradable industries. In the first half of the 1980s, international competition decreased the price-cost margin and increased the growth rate of productivity in the private sector. In the public sector, deeper trade penetration seems to have lowered the price-cost margin in the public enterprises that were above-average in capital intensity, but had no impact on productivity. Improved productivity in the public enterprises appears to be more related to changes in other areas - probably the reform of management. The paper also provides a brief background on trade and other economic reforms in Turkey in the 1980s.

Keywords: TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Health Monitoring&Evaluation; Economic Theory&Research; Environmental Economics&Policies; Banks&Banking Reform (search for similar items in EconPapers)
Date: 1991-02-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:604

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