Export promoting policies in Turkish manufacturing industry, 1980-1986

Abstract

This study basically aims at estimating the significance of export promoting policies for the expansion of Turkish manufacturing exports in the period 1980-86. The price responsiveness of export is also analyzed by evaluating the effects of a decline in labor wages on manufactured exports. In this study, export promoting policies are grouped as export subsidies (tax rebates, export credits and foreign currency allocations) and flexible exchange rate policy (devalmtion of Turkish lira since January 1980). As there is several years of data on a number of manufacturing subsectors, the cross-sectional time series models are used to test the significance of these policies. The tax rebates and forcing currency allocations are the most significant promoting policies affecting exports of manufacturing ii^ustry according to the study’s fii:dings. The devaluation of Turkish lira against dollar and mark has also an encouraging effect on the manufactured exports.