The Re-making of the Turkish Crisis

dc.contributor.author Orhangazi, Özgür
dc.contributor.author Orhangazi, Özgür
dc.contributor.author Yeldan, A. Erinç
dc.contributor.other Economics
dc.date 2021-03
dc.date.accessioned 2021-04-23T13:50:59Z
dc.date.available 2021-04-23T13:50:59Z
dc.date.issued 2021-03
dc.date.issued 2021
dc.description.abstract By the end of 2018 Turkey had entered a new economic crisis and a lengthy recession period. In contrast to the previous financial crises of 1994, 2001 and 2009, when the economy shrank abruptly with a spectacular collapse of asset values and a severe contraction of output, the 2018 economic crisis was characterized by a prolonged recession with persistent low (negative) rates of growth, dwindling investment performance, debt repayment problems, secularly rising unemployment, spiralling currency depreciation and high inflation. The mainstream approach attributes this dismal performance to a lack of 'structural reforms' and/or exogenous policy factors. However, this analysis shows that the underlying sources of the crisis are to be found not in the conjunctural cycles of reform fatigue, but rather in the post-2001, neoliberal, speculation-led growth model that relied excessively on hot-money inflows and external debt accumulation. This article argues that following the post-2001 orthodox reforms, a foreign capital inflow-dependent, debt-led and construction-centred economic growth model dominated the economy and caused a long build-up of imbalances and increased fragilities that led to the 2018 crisis. The Covid-19 pandemic of 2020-21 further exposed these fragilities, pushing the economy back into a recession with rapid capital outflows causing another round of sharp currency depreciation. en_US
dc.identifier.citationcount 37
dc.identifier.doi 10.1111/dech.12644 en_US
dc.identifier.issn 0012-155X
dc.identifier.issn 0012-155X en_US
dc.identifier.scopus 2-s2.0-85103195297 en_US
dc.identifier.uri https://hdl.handle.net/20.500.12469/3989
dc.identifier.wos WOS:000632579700001 en_US
dc.identifier.wosquality Q2
dc.institutionauthor Orhangazi, Özgür en_US
dc.institutionauthor Yeldan, A. Erinç en_US
dc.language.iso en en_US
dc.publisher WILEY en_US
dc.relation.journal DEVELOPMENT AND CHANGE en_US
dc.relation.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/closedAccess en_US
dc.scopus.citedbyCount 58
dc.title The Re-making of the Turkish Crisis en_US
dc.type Article en_US
dc.wos.citedbyCount 54
dspace.entity.type Publication
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