This thesis provides an analysis of investment behaviour in Turkey after the implementation of structural adjustment programs. The aim of the study is to investigate the impact of program policies on investment. The validity of neoclassical economic predictions, which are associated with adjustment programs, is also discussed. In most parts, a comparative approach is adopted. That is, the performance in relation to investment after the initiation of structural adjustment is examined in comparison to that prior to adjustment. The thesis includes a review of theoretical and empirical investment studies. A large, long-run macro level data set on investment and other related economic indicators was compiled for the analysis. The impact of reforms is examined on the basis of three key transmission mechanisms: the public sector, the financial sector and efficiency. An econometric analysis of investment behaviour on the basis of cointegration and the error-correction method is used to test the significance of the variables concerned. Four main findings deserve emphasis. First, the degree of deregulation in Turkey has been limited by factors such as market structure and the incentive system. Second, the contributory role of the public sector, especially public investment in the process of development, can be understood on the basis of a historical perspective. Third, the experience of Turkey does not provide support for the predictions of the McKinnon-Shaw hypothesis. That is, financial deregulation measures have neither increased savings and credits significantly nor led to an improvement in financial efficiency and intermediation. Finally, overall and investment efficiency estimates do not suggest a superior performance after the introduction of structural adjustment. In general, our findings suggest that there have been crucial structural changes, especially in the distribution of investment after liberalisation. However, program policies have not necessarily led to an improvement in the level and the growth rate of total investment.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:393160 |
| Date | January 2000 |
| Creators | Dagdeviren, Hulya |
| Publisher | SOAS, University of London |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
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