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

Creative Commons License

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

APPLIED ECONOMICS, vol.37, no.16, pp.1899-1905, 2005 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 37 Issue: 16
  • Publication Date: 2005
  • Doi Number: 10.1080/00036840500217903
  • Journal Indexes: Social Sciences Citation Index, Scopus
  • Page Numbers: pp.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.