Sustained export growth represents an essential component in any adjustment package designed to achieve simultaneous adjustment and growth. In the face of a binding current account constraint and to the extent that import substitution are severely limited, the resumption of growth can often only be achieved through faster export expansion. The diverging experience between Latin American and East Asian countries nderscores the contribution of export growth in limiting the costs of the adjustment process. (Sachs, 1985).
Not surprisingly, the past decade has witnessed a significant shift in the orientation of trade policy in many developing countries, with a sizeable reduction in the bias against export-oriented activities. (Ktuger, 1990). Yet the question remains whether the response of exports to the new and more favorable set of incentives is sufficient to allow developing countries to resume growth without jeopardizing their external accounts. Both Dongues and Riedel (1977) and Balassa et al. (1986) argue that exports exhibit a significant response to changes in relative prices. Moran (1988), however, fails to find significant price elasticities for a large sample of LDCs. Similarly; Sachs (1989) concludes export growth occurs mainly in the presence of large unemployment of domestic resources. This would suggest that often developing countries are forced to place excessive reliance on expenditure-reducing policies to achieve a viable current account balances because of limited effectiveness of expenditures-switching policies (Faini and de Melo, 1990)
And Turkey has undergone a radical shift in its trade incentive structure and has witnessed a sustained expansion in its exports. Especially after 1980s due to liberalization policies the export pattern of Turkey has changed radically. It is sometimes argued that strong export growth in developing countries occurs mainly in the presence of large unemployment of domestic resource, with price reforms playing relatively minor role. We will question whether relative prices and capacity are significant determinants of export growth for the period 1982-99. Devamını oku …