Integration with the Global Economy

Taymaz, Erol; Yilmaz, Kamil

Integration with the Global Economy

Autores

Taymaz, Erol

Yilmaz, Kamil

Editor

World Bank, Washington, DC

Descripción

This paper provides an extensive case study of the Turkish automotive and the consumer electronics industries. Despite a macroeconomic environment that inhibits investment and growth, both industries have achieved remarkable output and productivity growth since the early 1990s. Although there are similarities between the performances of the two industries, there are significant differences between their structures, links with domestic suppliers, technological orientation, and modes of integration with the global economy. The automobile industry is dominated by multinational companies, has a strong domestic supplier base, and has seized the opportunities opened up by the Customs Union by investing in new product and process technology and learning. The consumer electronics industry is dominated by a few, large, domestic firms, and has become competitive in the European market thanks to its geographical proximity, productive domestic labor, and focus on a protected and technologically mature segment of the market, which also helps explain the recent decline in industry's fortunes. These industries could have performed even better had more responsive macroeconomic policies been adopted. It is certain that governments could be more responsive only if far-reaching political/institutional reforms are undertaken by changing the constitution and current political party and election laws in order to establish public control over the political elites.

Palabras clave

AGRICULTURE, ANNUAL GROWTH, ANTIDUMPING DUTIES, ANTIDUMPING DUTY, AUTOMOBILE, AVERAGE PRODUCTIVITY, BALANCE OF PAYMENT, BALANCE OF PAYMENTS, BALANCE OF PAYMENTS CRISIS, BANKING SECTOR, BANKING SYSTEM, BARRIERS TO ENTRY, BASE YEAR, BILL, BONDS, BUDGET DEFICIT, BUDGET DEFICITS, CAPITAL ACCOUNT, CAPITAL ACCOUNT LIBERALIZATION, CAPITAL FLOWS, CAPITAL INFLOWS, CENTRAL BANK, COMPARATIVE ANALYSIS, COMPETITIVE ADVANTAGE, COMPETITIVE MARKETS, COMPETITIVENESS, CONSUMER DURABLES, CONSUMER ELECTRONICS, CONSUMER PRICE INFLATION, CONTROLLED PRICES, COUNTRY MARKETS, CRAWLING PEG, CURRENCY CRISIS, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICIT, CUSTOMS, CUSTOMS UNION, DEBT, DEBT CRISIS, DEPOSITS, DEPRECIATION, DESCRIPTIVE STATISTICS, DEVALUATION, DEVELOPMENT STRATEGY, DISCOURAGED WORKERS, DISINFLATION, DISTORTIONS, DOMESTIC CURRENCY, DOMESTIC DEMAND, DOMESTIC MARKET, DOMESTIC MONEY SUPPLY, DOMESTIC PRICES, DOMESTIC SAVINGS, E-MAIL, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC ENVIRONMENT, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ELECTRONICS INDUSTRIES, ELECTRONICS INDUSTRY, EQUIPMENT, EXCHANGE RATE POLICY, EXCHANGE RATE REGIME, EXPORT GROWTH, EXPORT MARKETS, EXPORT PERFORMANCE, EXPORT REVENUES, EXPORT SUBSIDIES, EXPORTER, EXPORTS, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL SHOCKS, FEDERAL RESERVE, FINANCIAL LIBERALIZATION, FINANCIAL MARKETS, FINANCIAL SECTOR, FISCAL BALANCES, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL DISCIPLINE, FISCAL IMBALANCES, FISCAL POLICIES, FISCAL POLICY, FISCAL REFORMS, FLEXIBLE EXCHANGE RATE, FLEXIBLE EXCHANGE RATE REGIME, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN INVESTMENT, FULL LIBERALIZATION, GDP, GDP DEFLATOR, GDP PER CAPITA, GLOBAL ECONOMY, GNP, GOVERNMENT EXPENDITURES, GROWTH PERFORMANCE, GROWTH RATE, GROWTH RATES, HIGH INFLATION, IMPORT, IMPORT LIBERALIZATION, IMPORT PRICE, IMPORT PRICES, IMPORT TARIFF, IMPORTS, INDUSTRIALIZATION, INFLATION, INFLATION EXPECTATIONS, INFLATION RATE, INFLATION TARGET, INFLATION TARGETING, INFLATIONARY EXPECTATIONS, INTEREST RATE, INTEREST RATES, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL MARKETS, INVESTMENT CLIMATE, INVESTMENT EXPENDITURES, LABOR FORCE, LABOR MARKET, LEVEL OF INVESTMENT, LICENSES, LOCAL BANKS, LOW INTEREST RATES, M2, MACROECONOMIC BALANCE, MACROECONOMIC CONDITIONS, MACROECONOMIC INDICATORS, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC PROBLEMS, MACROECONOMIC REFORMS, MACROECONOMIC STABILITY, MAJOR CURRENCY, MANUFACTURING, MARKET ECONOMY, MARKET SEGMENT, MARKET SHARE, MERGERS, MIDDLEINCOME COUNTRY, MONETARY POLICY, MONETARY POLICY FRAMEWORK, MONEY SUPPLY, MULTINATIONAL COMPANIES, MULTINATIONAL CORPORATIONS, NEXT GENERATION, NOMINAL INTEREST RATES, OIL PRICE, OIL PRICES, OPEN CAPITAL ACCOUNT, OVERVALUATION, PERFORMANCES, POLITICAL ECONOMY, POLITICAL ECONOMY OF REFORM, POLITICAL INSTABILITY, POPULATION GROWTH, PORTFOLIO, POVERTY REDUCTION, PRICE CEILINGS, PRICE HIKES, PRICE LEVELS, PRICE OF EXPORTS, PRODUCT MARKETS, PRODUCTION COSTS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROFIT MARGIN, PROFIT MARGINS, PUBLIC DEBT, PURCHASING POWER, PURCHASING POWER PARITY, QUERIES, RAPID GROWTH, REAL APPRECIATION, REAL EFFECTIVE EXCHANGE RATE, REAL EXCHANGE RATE, REAL GDP, REAL INTEREST RATES, RECESSION, ROLE OF INSTITUTIONS, SECTOR REFORM, SECTOR REFORMS, STABLE GROWTH, STORE OF VALUE, STRUCTURAL REFORMS, SUPPLY-SIDE, SURPLUS, T-BILLS, TARIFF BARRIERS, TARIFFS ON IMPORTS, TAX REFORM, TAX REFORMS, TAX REVENUES, TECHNICAL UNIVERSITY, TELEPHONE, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TOTAL INVESTMENT, TRADE BARRIERS, TRADE DEFICIT, TRADE LIBERALIZATION, TRADE REGIME, TRADE RELATIONS, TRANSITION ECONOMIES, UNCERTAINTY, UNEMPLOYMENT, UNEMPLOYMENT RATE, VALUE ADDED, VERTICAL INTEGRATION, WAGES, WORLD ECONOMY, WORLD MARKETS