Turkish industry's response to competition

Turkish manufacturers reacted to intensive trade competition from low-cost countries and substantial exchange-rate fluctuations during the last decade with increased productivity, product differentiation and wage growth moderation, says a new paper from the central bank.

Some made successful use of these opportunities, while the less sophisticated and lower-technology activities, which use low-skilled labour and low-price local inputs could not fully cope and lost ground, the authors add.

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