Effects of trade liberalization on the welfare of the agriculture sector via double factoral domestic terms of trade in Turkey: 1990-2010
The effect of the agricultural support policies on the prices of the agricultural commodities has been declining in Turkey since 1990s. The prices of the agricultural commodities approximate to the world prices. The employment in the agriculture sector has been declining due to the transfer of labor from the agriculture sector to the non-agriculture sector. In this paper, the effects of the trade liberalization on the welfare of the agriculture sector in Turkey at the period of 1990-2010 are estimated by the double factoral domestic terms of trade indicator. The findings of the estimation denote that the welfare of the agriculture sector is increased related with the labor productivity increase triggered by the labor transfer from the agriculture sector at the trade liberalization process while the domestic terms of trade is developed in the expense of it. The welfare is transferred from the agriculture sector to the industry sector via relative price scissor. Even though the relative productivity of the agriculture sector is increased at the examination period, the welfare of the agriculture sector is negatively affected from the domestic terms of trade.
Year of publication: |
2014
|
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Authors: | Dagdemir, Elif Uckan |
Published in: |
Business and Economic Horizons (BEH). - Prague Development Center (PRADEC). - Vol. 10.2014, 2, p. 138-150
|
Publisher: |
Prague Development Center (PRADEC) |
Subject: | Double factoral domestic terms of trade | domestic terms of trade | trade liberalization | agriculture sector | inter-sectoral income distribution |
Saved in:
freely available
Extent: | application/pdf text/html |
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Type of publication: | Article |
Classification: | F14 - Country and Industry Studies of Trade ; I31 - General Welfare; Basic Needs; Quality of Life ; O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products |
Source: |
Persistent link: https://www.econbiz.de/10011165427
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