Taymaz, ErolYilmaz, Kamil2017-08-282017-08-282008https://hdl.handle.net/10986/28034This paper provides an extensive case study of the Turkish automotive and the consumer electronics industries. Despite a macroeconomic environment that inhibits investment and growth, both industries have achieved remarkable output and productivity growth since the early 1990s. Although there are similarities between the performances of the two industries, there are significant differences between their structures, links with domestic suppliers, technological orientation, and modes of integration with the global economy. The automobile industry is dominated by multinational companies, has a strong domestic supplier base, and has seized the opportunities opened up by the Customs Union by investing in new product and process technology and learning. The consumer electronics industry is dominated by a few, large, domestic firms, and has become competitive in the European market thanks to its geographical proximity, productive domestic labor, and focus on a protected and technologically mature segment of the market, which also helps explain the recent decline in industry's fortunes. These industries could have performed even better had more responsive macroeconomic policies been adopted. It is certain that governments could be more responsive only if far-reaching political/institutional reforms are undertaken by changing the constitution and current political party and election laws in order to establish public control over the political elites.en-USCC BY 3.0 IGOAGRICULTUREANNUAL GROWTHANTIDUMPING DUTIESANTIDUMPING DUTYAUTOMOBILEAVERAGE PRODUCTIVITYBALANCE OF PAYMENTBALANCE OF PAYMENTSBALANCE OF PAYMENTS CRISISBANKING SECTORBANKING SYSTEMBARRIERS TO ENTRYBASE YEARBILLBONDSBUDGET DEFICITBUDGET DEFICITSCAPITAL ACCOUNTCAPITAL ACCOUNT LIBERALIZATIONCAPITAL FLOWSCAPITAL INFLOWSCENTRAL BANKCOMPARATIVE ANALYSISCOMPETITIVE ADVANTAGECOMPETITIVE MARKETSCOMPETITIVENESSCONSUMER DURABLESCONSUMER ELECTRONICSCONSUMER PRICE INFLATIONCONTROLLED PRICESCOUNTRY MARKETSCRAWLING PEGCURRENCY CRISISCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCUSTOMSCUSTOMS UNIONDEBTDEBT CRISISDEPOSITSDEPRECIATIONDESCRIPTIVE STATISTICSDEVALUATIONDEVELOPMENT STRATEGYDISCOURAGED WORKERSDISINFLATIONDISTORTIONSDOMESTIC CURRENCYDOMESTIC DEMANDDOMESTIC MARKETDOMESTIC MONEY SUPPLYDOMESTIC PRICESDOMESTIC SAVINGSE-MAILECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC ENVIRONMENTECONOMIC GROWTHECONOMIC PERFORMANCEELECTRONICS INDUSTRIESELECTRONICS INDUSTRYEQUIPMENTEXCHANGE RATE POLICYEXCHANGE RATE REGIMEEXPORT GROWTHEXPORT MARKETSEXPORT PERFORMANCEEXPORT REVENUESEXPORT SUBSIDIESEXPORTEREXPORTSEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL SHOCKSFEDERAL RESERVEFINANCIAL LIBERALIZATIONFINANCIAL MARKETSFINANCIAL SECTORFISCAL BALANCESFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL IMBALANCESFISCAL POLICIESFISCAL POLICYFISCAL REFORMSFLEXIBLE EXCHANGE RATEFLEXIBLE EXCHANGE RATE REGIMEFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTFULL LIBERALIZATIONGDPGDP DEFLATORGDP PER CAPITAGLOBAL ECONOMYGNPGOVERNMENT EXPENDITURESGROWTH PERFORMANCEGROWTH RATEGROWTH RATESHIGH INFLATIONIMPORTIMPORT LIBERALIZATIONIMPORT PRICEIMPORT PRICESIMPORT TARIFFIMPORTSINDUSTRIALIZATIONINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATION TARGETINFLATION TARGETINGINFLATIONARY EXPECTATIONSINTEREST RATEINTEREST RATESINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETSINVESTMENT CLIMATEINVESTMENT EXPENDITURESLABOR FORCELABOR MARKETLEVEL OF INVESTMENTLICENSESLOCAL BANKSLOW INTEREST RATESM2MACROECONOMIC BALANCEMACROECONOMIC CONDITIONSMACROECONOMIC INDICATORSMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC PROBLEMSMACROECONOMIC REFORMSMACROECONOMIC STABILITYMAJOR CURRENCYMANUFACTURINGMARKET ECONOMYMARKET SEGMENTMARKET SHAREMERGERSMIDDLE­INCOME COUNTRYMONETARY POLICYMONETARY POLICY FRAMEWORKMONEY SUPPLYMULTINATIONAL COMPANIESMULTINATIONAL CORPORATIONSNEXT GENERATIONNOMINAL INTEREST RATESOIL PRICEOIL PRICESOPEN CAPITAL ACCOUNTOVERVALUATIONPERFORMANCESPOLITICAL ECONOMYPOLITICAL ECONOMY OF REFORMPOLITICAL INSTABILITYPOPULATION GROWTHPORTFOLIOPOVERTY REDUCTIONPRICE CEILINGSPRICE HIKESPRICE LEVELSPRICE OF EXPORTSPRODUCT MARKETSPRODUCTION COSTSPRODUCTIVITYPRODUCTIVITY GROWTHPROFIT MARGINPROFIT MARGINSPUBLIC DEBTPURCHASING POWERPURCHASING POWER PARITYQUERIESRAPID GROWTHREAL APPRECIATIONREAL EFFECTIVE EXCHANGE RATEREAL EXCHANGE RATEREAL GDPREAL INTEREST RATESRECESSIONROLE OF INSTITUTIONSSECTOR REFORMSECTOR REFORMSSTABLE GROWTHSTORE OF VALUESTRUCTURAL REFORMSSUPPLY-SIDESURPLUST-BILLSTARIFF BARRIERSTARIFFS ON IMPORTSTAX REFORMTAX REFORMSTAX REVENUESTECHNICAL UNIVERSITYTELEPHONETOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTOTAL INVESTMENTTRADE BARRIERSTRADE DEFICITTRADE LIBERALIZATIONTRADE REGIMETRADE RELATIONSTRANSITION ECONOMIESUNCERTAINTYUNEMPLOYMENTUNEMPLOYMENT RATEVALUE ADDEDVERTICAL INTEGRATIONWAGESWORLD ECONOMYWORLD MARKETSWorking PaperWorld Bank10.1596/28034