Economic liberalization in theory and practice: A comparative analysis of chile and Turkey

Abstract

DZET Bu tezde, liberalleşme teşebbüsünün kademeli ve sok işlem yaklasirnlar inin etki derecesi arast ir i lmis, ve bir Orta Amerika ülkesi olan Sili ile Türkiye'nin liberalleşme ve stabillesme programlar inin karsi last ir i lmasi yapilmistir. Liberalleşme teşebbüsünde kademeli yaklasimin cok daha etkili olduğu genellikle kabul edilmekle' beraber, liberalleşme programinin etkinliğinde ekonomik sektörlerin sirasinin da önemli bir rol oynadigi gerçektir. Uluslararasi sermaye kontrollerinin ancak domestik finansal piyasa düzenlendikten ve faiz oranlari yükseltildikten sonra kaldirilmasi gerekir. Ayrica, cari hesaplar sermaye kontrolleri gevşetilmeden once 1 iberal lest ir i lmel idi r. Önerilen sira takip edildiği takdirde kademeli yaklasimin cok daha etkili olacagi sonucuna varilmistir.

ABSTRACT In this thesis, the relative effectiveness of the gradual and shock-treatment approaches of the liberalization attempt is investigated and a comparison of two countries, a Latin American country, Chile, and Turkey, is undertaken on the basis of their liberalization and stabilization programs. The gradual approach to liberalization is generally considered to be much more efficient than the shock treatment approach, but it is concluded that the sequence of the economic markets to be liberalized plays an important role in the efficiency of the liberalization program. It is found out that the controls on external capital flows should only be lifted after the domestic financial market has been reformed and domestic interest rates have been raised. Also, the current account should be liberalized before relaxing the capital controls. It is concluded that a gradual approach is much more efficient if the suggested sequence is followed.