The purpose of this paper is to examine the demand characteristics of cigarettes in Turkey. Aggregate time-series data for the 1960 88 period are used in estimation. Income and price elasticities of cigarette demand are obtained. The effect of health warning is estimated to reduce cigarette consumption by about 8% since the inception of warnings in 1982. Imports of cigarettes have been allowed since 1984 in addition to advertising of cigarettes in the non-electronic media. The effect of health warnings are found to be stronger than the opposing effect of advertising. The results also suggest that public education about adverse health effects of smoking may be more effective in reducing consumption and less regressive on consumer incomes than raising the price of cigarettes.


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...
Environmental impact of customs union agreement with EU on Turkey's trade in manufacturing industry
Akbostancı Özkazanç, Elif; Tunç, Gül İpek (Informa UK Limited, 2008-01-01)
In this study, we analyse Turkey's manufacturing industry trade by estimating sectoral import and export demand equations for 1980-2000. The study aims to understand whether the trade in the manufacturing industry complies with pollution haven hypothesis, and whether the free trade environment provided by the customs union (CU) agreement altered the trade pattern of the clean and dirty industries. Results of our econometric models have shown that while CU positively affects the import demand, it does not ha...
Real wages, profit margins and inflation in Turkish manufacturing under post-liberalization
Günay, Aslı; Metin-Ozcan, K; Yeldan, E (Informa UK Limited, 2005-09-10)
This article reports investigations into the behaviour of gross profit margins (mark-ups) in Turkish manufacturing industries for the post-1980 liberalization period in relation to price inflation, trade liberalization (openness) and real wage costs. Panel data econometrics over 29 subsectors of Turkish manufacturing are used over the period 1980-1996. Results suggest that profit margins are positively and significantly related both to price inflation and real wage costs. However, openness is found to have ...
Corporate sector liability dollarization and exchange rate balance sheet effect in Turkey
Kesriyeli, Mehtap; Özmen, Erdal; Yigit, Serkan (Informa UK Limited, 2011-01-01)
In this study, we investigate the causes and balance sheet effect consequences of Liability Dollarization (LD) of nonfinancial sectors in Turkey. The dynamic panel data Generalized Method of Moments (GMM) results suggest that both sector specific and macroeconomic variables are significant in explaining the corporate sector LD. Industries appear to partially match the currency composition of their debt with their income streams. Devaluations are found to be contractionary, in terms of investments and profit...
Direct foreign investment in Turkish manufacturing industry
Koldaş, Tevfik; Şenses, Fikret; Department of Economics (2005)
This study deals with direct foreign investment (DFI) in Turkish manufacturing industry with two main objectives: First, the reasons of the failure of Turkish economy in attracting sufficiently high levels of DFI is analysed as compared to the experiences other developing countries that have been successful on this count. Second, the impact of DFI in Turkish manufacturing industry is analysed in terms of export, employment, and technology contribution as well as the comparative behaviour of domestic and DFI...
Citation Formats
A. Tansel, “CIGARETTE DEMAND, HEALTH SCARES AND EDUCATION IN TURKEY,” APPLIED ECONOMICS, pp. 521–529, 1993, Accessed: 00, 2020. [Online]. Available: