In this thesis, the terms of trade changes in Turkey since 1970 are analyzed.
In the 1970s, Turkey faced strong terms of trade declines mainly due to two oil price
shocks. Rapid diversification of Turkish exports into manufactures was instrumental
in avoiding further declines in its terms of trade in the 1980s. However, the slow
pace of the diversification into more skill- and technology-intensive manufactures in
Turkey combined with the fallacy of composition problem in low-tech, labourintensive
manufactures may pose a real danger to the prices of its exports. To the
extent that in the long-term, the changes in terms of trade of a country are determined
by the level of technology embodied in its exports, the concentration of Turkish
exports in low-tech, labour-intensive manufactures may highlight the need for
upgrading exports and establishing backward- and forward-linkages between
industries to escape from the trap of terms of trade deterioration in the long-term.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/12607463/index.pdf |
| Date | 01 September 2006 |
| Creators | Tugan, Mustafa |
| Contributors | Somel, Cem |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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