Real wages, profit margins and inflation in Turkish manufacturing under post-liberalization

Creative Commons License

Gunay A. , Metin-Ozcan K., Yeldan E.

APPLIED ECONOMICS, cilt.37, sa.16, ss.1899-1905, 2005 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 37 Konu: 16
  • Basım Tarihi: 2005
  • Doi Numarası: 10.1080/00036840500217903
  • Sayfa Sayıları: ss.1899-1905


This article reports investigations into the behaviour of gross profit margins (mark-ups) in Turkish manufacturing industries for the post-1980 liberalization period in relation to price inflation, trade liberalization (openness) and real wage costs. Panel data econometrics over 29 subsectors of Turkish manufacturing are used over the period 1980-1996. Results suggest that profit margins are positively and significantly related both to price inflation and real wage costs. However, openness is found to have very little impact on profit margins.