Test of Pauper Labor Argument: Turkey Case
Tuba Baskonus Direkçi

Abstract
This paper aims to explore low cost labor advantage on export performance of Turkey. Two alternative models have been explored which shows that among the given variables there is no long term impact. Both LS and VAR technique has been adopted to find statistical significance of competitiveness determinants and the impulse-response relations. For the 1988-2006 period examined data set shows that there is a meaningful linkage as hypothesized. Findings also show that there higher wages in no way restricts international competitiveness which is very parallel with US and UK experiences.

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