Turkey's transfer problem in the 1980s :|the external and the internal adjustment mechanisms

Abstract

This thesis attempts an empirical interpretation of the Turkish transfer problem during the 1980's, the main cause of which is the debt selVice obligations. The thesis investigates how Turkey attempted to solve the twin problems of the external and internal transfers in the 1980s. In particular, this study formulates the salient features of the transfer process and investigates the extent to which policies in this process met the requirements of the textbook transfer theory. Using a simple macroeconomic framework, the thesis also attempts to relate the transfer problem to the growth-oriented adjustment literature. Mter the introduction, the second chapter introduces the transfer debate in literature. The third chapter gives an ovelView of the adjustment process and sets the methodological framework for measuring transfers. The fourth chapter probes further into the external transfer problem. The fifth chapter takes up the internal transfer problem. The sixth chapter develops a simple macro-economic model inspired by the growth-oriented literature of the IMF and the World Bank and uses this model to simulate the effects of a transfer requirement and alternative ways of financing the transfer on output growth and price stability. The last chapter summarizes the main findings.