Turkey’s strategic trade policy alternatives in a world of multi-polar trade blocs: lessons from an intertemporal, multi-region general equilibrium model

Abstract

Turkey has initiated its process of liberalization and integration with the world commodity and financial markets in January, 1980. With an over-reaching reform agenda, first the existing system of multiple exchange system was eliminated and a managed floating foreign exchange regime was enacted. An extensive direct subsidization scheme was introduced to promote exports. In the meantime, commodity markets were liberalized and a vigorous price reform was implemented.