Distributional Effects and Saving- Investment Behaviour in a Liberalizing Economy : The Case of Turkey

Date

1993

Author

Celasun, Merih
Tansel, Aysıt

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After providing an overview of the key characteristics of Turkey's macroeconomic adjustment experience, the paper presents econometric estimates for Turkish saving-investment behaviour over the 1972-88 period. The estimation results capture significant impact of functional income distribution on private as well as on total domestic saving. Financial liberalization appears to have produced a positive effect on private saving. Evidence points to the workings of flexible accelerator mechanism for private capital formation under the strong influence of real import availability and unexpected inflation. The paper also provides estimated models for private saving surplus and current (external) account deficit. Real external deficit is found to be sensitive to shifts in domestic factor shares.

URI

https://hdl.handle.net/11511/112295

Collections

Department of Economics, Article