Trade exposure and technical efficiency in the Turkish rubber industry: A preliminary report

Date

1996

Author

Gökçekuş, Ömer

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When a country's foreign trade regime becomes more open, a domestic firm faces more competition and starts to operate more efficiently in order to reduce its production cost. This proposition is examined in this paper by using plant level data and a simple econometric model. It is shown that technical efficiency levels improved significantly when Turkey's foreign trade regime shifted from a restrictive one to a more liberalized one: In the Turkish rubber industry which is examined here, the technical efficiency level increased by 15.6 %. It is also shown that plant-specific factors have an effect on technical efficiency levels.

URI

https://hdl.handle.net/11511/109459

Collections

Department of Economics, Article