THE 1990 TRADE LIBERALISATION POLICY OF TURKY: AN APPLIED GENERAL EQUILIBRIUM ASSESSMENT

Author: DE SANTIS, ROBERTO A.

Source: International Economic Journal, Volume 15, Number 2, Number 2/Summer 2001 , pp. 115-132(18)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

I use a static multi-sector, multi-labour, multi-household Applied General Equilibrium (AGE) model for Turkey to show that the trade policy implemented by Turkish policy-makers in the 1990s is not trade diverting. Aggregate welfare rises by 0.6% of the consumer income. Most importantly, since agriculture and traditional industrial sectors grow to the detriment of services, rural groups are better off (2.3% of the rural income), while urban groups are worse off (−0.5% of the urban income). It is also shown that overall income inequality declines by 1.1–1.7%, and that its main source is the inter-income inequality between urban and rural areas, which decreases by 8.9–14.7%. [D58, F14, F15, F17]

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10168730100080016

Affiliations: 1: Kiel Institute of World Economics

Publication date: 2001-06-01