Export Expansion, Capital Accumulation and Distribution in Turkish Manufacturing, 1980–9

  • Fatma Taskin
  • A. Erinc Yeldan

Abstract

In the early 1980s, Turkey started to pursue an export-oriented growth strategy centred on manufactured exports. Stimulated mainly by a vigorous export promotion strategy which consisted of high export subsidies, competitive devaluations of the Turkish lira, and repression of domestic demand, Turkey increased the total value of its merchandise exports fourfold by the first half of the 1980s. While the economic and political effects of this episode are in general well-documented, (for example, Celasun and Rodrik, 1989; Senses and Yamada, 1990; Onis and Riedel, 1993), its income distribution consequences remain unexplored. Indeed, throughout the decade, the observed rapid surge in manufacturing exports appear to have been accompanied by faltering rates of capital accumulation and a deterioration in the purchasing power of the working classes. Although there are references to the problem in the Turkish literature (see, for example, Celasun, 1989; Yeldan, 1993; Boratav, 1992), a formal analysis of the linkages between export expansion and income redistribution is yet to be undertaken.

Keywords

Fatigue Petroleum Steam Rubber Income 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Asikoglu, Y. and Uctum, M. (1992), ‘Exchange Rates in Turkey’, World Development, vol. 20, pp. 1501–14.Google Scholar
  2. Boratav, K. (1992), 1980’li Yillarda Turkiye’de Sosyal Siniflar ve Bolusum (Istanbul: Gercek Yay).Google Scholar
  3. Celâsun, M. (1989), ‘Income Distribution and Employment Aspect of Turkey’s Post-1980 Adjustment’, METU Studies in Development. vol. 16, nos 3–4. pp. 1–32.Google Scholar
  4. Celâsun, M. (1992), ‘Trade and Industrialization in Turkey: Initial Conditions, Policy and Performance in the 1980s’, paper presented at the Bilkent— Lancaster Joint Conference on the ‘Turkish Economy since Liberalization’, Ankara, October 1992 (mimeo).Google Scholar
  5. Celâsun, M. and Rodrik D. (1989), ‘Debt, Adjustment and Growth: Turkey’, Book IV in J. Sachs and M. Collins (eds), Developing Country Debt and Economic Performance: Country Studies (Chicago, IL: The University of Chicago Press).Google Scholar
  6. Ersel, H. (1991), ‘Structural Adjustment: Turkey, 1980–1990’, paper presented at the IMF—Pakistan Administrative Staff College Joint Seminar, Lahore, 26–28 October 1991 (mimeo).Google Scholar
  7. Olgun, H. and Togan, S. (1991) ‘Trade Liberalization and Structure of Protection in Turkey in the 1980s: A Quantitative Approach’, Weltwirtschaftlishes Aerchiv. vol. 127(1). pp. 152–70.CrossRefGoogle Scholar
  8. Onis, Z. (1991), ‘Political Economy of Turkey in the 1980s: Anatomy of Unorthodox Liberalism’, in M. Heper (ed.), Strong State and Economic Interest Groups: The Post-1980 Turkish Experience (Berlin: de Gragter) Ch. 2.Google Scholar
  9. Onis, Z. and Riedel, J. (1993), Economic Crises and Long-Term Growth in Turkey (Washington, DC: World Bank).Google Scholar
  10. Ozmucur, S. (1991), ‘Price and Income Distribution’, Bogazici Universitesi Research Papers, No. 155/EC 91–17.Google Scholar
  11. Rittenberg, L. (1991), ‘Investment Spending and Interest Rate Policy: The Case of Financial Liberalization in Turkey’, Journal of Development Studies, vol. 27, pp. 151–67.CrossRefGoogle Scholar
  12. Sarkar, P. and Singer, J. W. (1991), ‘Manufactured Exports of Developing Countries and Their Terms of Trade Since 1965’, World Development, vol. 19, no. 4, pp. 333–40.CrossRefGoogle Scholar
  13. Senses, F. and Yamada, T. (1990), Stabilization and Structural Adjustment Program in Turkey (Tokyo: Institute of Developing Economics Research Programme Series, no. 85).Google Scholar
  14. State Institute of Statistics (SIS), Statistical Yearbook of Turkey (various years), Ankara.Google Scholar
  15. Togan, S. (1992), Foreign Trade Regime and Liberalization of Foreign Trade in Turkey during 1980s (Ankara: Turkish Eximbank).Google Scholar
  16. Yeldan, E. (1994), ‘The Economic Structure of Power under Turkish Structural Adjustment: Prices, Growth and Accumulation’, in F. Senses (ed.), Recent Industrialization Experience of Turkey in a Global Context (London: Greenwood Press) Ch. 6, pp. 75–80.Google Scholar

Copyright information

© S. Togan and V. N. Balasubramanyam 1996

Authors and Affiliations

  • Fatma Taskin
  • A. Erinc Yeldan

There are no affiliations available

Personalised recommendations