This 2010 edition of OECD's periodical review of Turkey's economy examines sustaining the post-crisis recovery and mitigating future macroeconomic volatility, fostering sound integration with the global capital market, and regulatory reforms to unlock long-term growth.
Table of contents:
Executive summary Assessment and recommendations Chapter 1.After the crisis: ensuring sustained recovery and mitigating future macroeconomic volatility -Turkey was markedly affected by the 2008-09 recession -Recovery is in train and prospects for 2010-11 are brighter -Monetary and fiscal policy exit challenges -Mitigating risks of macroeconomic instability -Policy recommendations -Annex 1.A1. Explaining recent GDP dynamics -Annex 1.A2. Current account deficit and external debt simulationswith accelerating domestic demand -Annex 1.A3. Empirical determinants of saving -Annex 1.A4. Recent trends of public finances Chapter 2.Fostering sound integration with the global capital market -Turkey’s terms of access to international capital markets have improved -Capital costs are declining -Macroeconomic and institutional credibility accelerates convergence -Credit ratings bear on international capital market standing -Other enhancements in international capital market status would bring additional benefits -Fostering sound integration with the global capital market -Policy recommendations -Annex 2.A1. Estimated models for EMBI spreads and credit ratings -Annex 2.A2. Lessons from Turkey’s past experience with multi-year fiscal planning -Annex 2.A3. Some challenges of comprehensive general government accounting according to recent experience -Annex 2.A4. Experience of OECD countries with fiscal policy councils Chapter 3.Regulatory reforms to unlock long-term growth -Performance has been strong in the 2000s but the income gap remains large -Labour market reforms are indispensible -Product market regulations hold back productivity -Benefits of labour and product market reforms are large -Policy recommendations -Annex 3.A1. The impact of the 2003 labour law change on job creation -Annex 3.A2. Progress with structural reform: follow-up to OECD policy recommendations -Annex 3.A3. Illustrative long-term growth scenarios