Macroeconomic impact of workers' remittances on output growth: evidence from Turkey

Yaşar, Pınar
In this study, a demand oriented simultaneous equation macroeconometric model with a dynamic perspective is constructed in order to investigate the impact of workers̕ remittances on output growth via their effects on key macro variables such as private consumption, investment and imports for Turkey. The study covers the period of 1964-2003 on an annual basis. Results of the analysis suggest that workers̕ remittances affect output growth in a positive manner through the multiplier process. It is found that the highest induced growth rate by remittances to output growth belongs to the early 1970s especially the year of 1973, which corresponds to the date of first oil shock and also the end of labour migration to Europe. Thus, it is concluded that although workers̕ remittances have been mostly used for consumption and imports as mentioned in most of the studies both for Turkey and other countries, remittances contributed to economic growth of Turkey positively through the multiplier process especially in the early 1970s.


Exchange rate volatility : the case of Turkey
Öztürk, Kevser; Gaygısız Lajunen, Esma; Department of Economics (2006)
In this study, different from previous studies, the explanatory power of Student-t distribution is compared to normal distribution by employing both standard GARCH and EGARCH models to dollar/ lira (USD/TRY) exchange rate. Then the impact of Central Bank of Republic of the Turkey’s (CBRT) decisions and actions on both the level of exchange rate and the volatility is investigated. Moreover the relationship between volatility and market liquidity is examined using spot foreign exchange (FX) market volume as a...
Multiregional social accounting matrix and multiplier analysis: an application for Turkish economy
Erdoğan, Eda; Voyvoda, Ebru; Department of Economics (2011)
Social accounting matrix (SAM) is one of the tools used in regional economic analysis, enabling understanding the structure of the economy as well as analyzing the impacts of policies or exogenous shocks. In this thesis, a two-region SAM of Turkey is constructed for the year 2002 and the findings of multiplier analysis are presented. To this end, first, a two-region input-output (I-O) table is constructed using location quotient (LQ) method and using this two-region I-O table, a two-region SAM is compiled. ...
Fiscal sustainability, banking fragility and balance sheets : 2000-2001 financial crises in Turkey
Koğar, Çiğdem İzgi; Özmen, Erdal; Department of Economics (2004)
The aim of this thesis is to identify and assess the reasons of the Turkish financial crises based on various crises model explanations including the first, the second and the third generation models. It is argued that following factors played a crucial role in triggering crises in Turkey. Firstly, under the weak sustainable fiscal policies, implementation of the exchange rate based stabilization program caused the increase in vulnerabilities in the sectoral balance sheets and thus increased the prospective...
Macroeconomics of twin targeting in Turkey analytics of a financial computable general equilibrium model
TELLİ, ÇAĞATAY; Voyvoda, Ebru; YELDAN, ALP ERİNÇ (Informa UK Limited, 2008-03-01)
The paper provides an overview of the post-1998 Turkish economy and constructs a macroeconomic computable general equilibrium (CGE) model to illustrate the real and financial sectoral adjustments of the Turkish economy under the conditionalities of the 'twin targets': on primary surplus to gross national product (GNP) ratio and on the inflation rate. We further utilize the model to study three sets of issues: (i) the critical role of the expanded foreign capital inflows in resolving the macroeconomic impass...
Determinants of current account deficits in industrialized and developing coıuntries: an empirical investigation
Kaya Bahçe, Seçil Aysed; Kaya Bahçe, Seçil Aysed; Department of Economics (2005)
This study aims to analyze the determinants of the current account deficits for a broad samples of industrial and developing countries for the period 1984-2001. Using a dynamic panel data estimation procedure, we try to unfold the impact of several macro economic and institutional variables on current account deficits. In this context, we also examine the validity of Feldstein Horioka puzzle and its relevance to the current account imbalances. Results show that better governance, a more sophisticated financ...
Citation Formats
P. Yaşar, “Macroeconomic impact of workers’ remittances on output growth: evidence from Turkey,” M.S. - Master of Science, Middle East Technical University, 2005.