An Assessment of Output Performance in Northern Cyprus

• Authors: Hakan Mihci , Devrim Karaman
• Languages of publication: EN

Abstracts

EN

This paper mainly attempts to investigate empirically the Northern Cyprus output performance by using a panel data method for the period 1977-2005. A supplementary aim is to assess the impact of export orientation on the Northern Cyprus output level. Empirical results suggest that investment, employment and export variables significantly and positively affect the sectoral production increases in Northern Cyprus. Among other variables, exports of goods and services exert considerable affects on the sectoral production in the case of Northern Cyprus economy. Therefore, it can be suggested that a production structure mostly dependent on foreign demand makes it easier to overcome the restrictions originating from the insufficiency of the domestic market through creating new employment opportunities for highly qualified labor force and additional production capacity with productive investments. Moreover, exports have the potential to rise total factor productivities, and hence, to improve output expansion of the country further. In short, one may propose that outward orientation seems to be relevant in achieving higher levels of output in the case of the Northern Cyprus economy.

Keywords

EN

Economic development and growth; island economy; Northern Cyprus economy; panel data analysis

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2009
• Volume: 4
• Issue: 1
• Pages: 21-35

Dates

published

2009-04-01

online

2011-06-03

Contributors

author

Hakan Mihci

• Department of Economics, Hacettepe University, 06800 Beytepe, Ankara, Turkey

author

Devrim Karaman

• Project Evaluation Department, North Cyprus Development Bank, Leftkosa (Nicosia), North Cyprus

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Identifiers

DOI

10.2478/v10033-009-0002-7