World system, unequal exchange, Turkey (Cem Somel)

just published in CJE - empirical study - abstract below


Cambridge Journal of Economics 27:919-933 (2003)
Copyright © 2003 Cambridge Political Economy Society

Estimating the surplus in the periphery: an application to Turkey
Cem Somel
Middle East Technical University.

Address for correspondence: Cem Somel, Department of
Economics, Middle East Technical University, 06531 Ankara, Turkey; email:
somel@metu.edu.tr

Abstract

This note discusses how the economic surplus concept can be used to analyse
the constraints the world system imposes on economic development. An
estimation of the surplus for Turkey for 1980-96 utilises Köhler's unequal
exchange analysis to measure the transfer of surplus abroad and the official
minimum wage to calculate essential private consumption. The estimation
yields the allocation of the surplus between non-essential consumption,
investment and unrequited transfers abroad. The note assesses Lippit's
argument that the main obstacle to development is the misuse of the surplus
in the domestic economy and not transfers abroad.

Key Words: Economic surplus . Dependency . Development