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The 1990 Trade Liberalisation Policy of Turkey: An Applied General Equilibrium Assessment
Authors:Dr Roberto A De Santis
Institution:1. Kiel Institute of World Economics r.desantis@ifw.uni-kiel.de
Abstract:I use a static multi-sector, multi-labour, multi-household Applied General Equilibrium (AGE) model for Turkey to show that the trade policy implemented by Turkish policy-makers in the 1990s is not trade diverting. Aggregate welfare rises by 0.6% of the consumer income. Most importantly, since agriculture and traditional the rural income), while urban groups are worse off (-0.5% of the urban income). It is also shown that overall income inequality declines by 1.1-1.7%, and that its main source is the inter-income inequality between urban and rural areas, which decreases by 8.9- 14.7%. D58, F14, F17]
Keywords:
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