International Congress on Eurasian Economies

International Conference on Eurasian Economies

17-18 September 2013 – St. Petersburg, RUSSIA

Paper detail

Paper ID : 746
Status : Paper published
Language : Turkish
Topic : International Trade and Globalization
Presenter: Ph.D. candidate Gürçem Oransay
Session : 7B Uluslararası Ticaret III

An Examination of the Relationship between Exports and Wages for Turkey
İhracat Ve Ücretler Arasındaki İlişkinin Türkiye Ekonomisi İçin Sınanması


In this study the together with increasing foregin trade after trade liberalization, affects of changing income distribution on wages has been discussed. Assuming wages as an issue of income distribution, it continues with foregin trade theories which are related to foreign trade and affect of export on wages in particular. The developments such as effective markets after trade liberalization, high efficiency and removal of barriers in front of international trade increase cost competitiveness and wage levels change. It is still discussed whether foreign trade has positive or negative affects on wages but it can be claimed that differences of opinion vary depending on economical structures and trade volumes of countries. Using a model which has been supplied from both theoretical and practical literature, this research will try to find out affects of export and openness on wages using unit root test, cointegration techniques and error correction mechanism on Turkish economy during the period of 1988:Q1-2010:Q4. Affects of both export and openness on wages has been studied seperately for sub sectors of Turkish Manufacturing Industry. Although there is not a full compliance in all sectors which are studied in all models within periods examined, it has been found out that export and openness create a negative affect on wages.

JEL codes: E24, O24

Oransay, Gürçem (2013). "An Examination of the Relationship between Exports and Wages for Turkey" in Proceedings of International Conference of Eurasian Economies 2013, pp.541-548, St. Petersburg, RUSSIA.


Full paper in PDF format.

Session 7B: Uluslararası Ticaret III

Beykent University Turkish Central Bank TIKA