Abstract:The Syrian civil war resulted in mass migration out of Syria into the neighboring countries. Turkey has received the greatest number of refugees from Syria. The Syrian refugees mostly initially settled in refugee camps in Southeastern Turkey. As the Syrian conflict intensified and lengthened, the number of Syrian refugees in Turkey increased and the Syrian population started to reside in the neighboring provinces and started to have important effects on the local economy. In 2016, Syrian refugees were allowed to receive work permits and they became more dispersed geographically. This paper investigates the impact of Syrian refugees on regional labour markets. Panel data for the years 2004 through 2016 is utilized for 26 regions in Turkey. Syrian refugees are found to increase unemployment and decrease informal and formal employment.

This paper investigates whether the relationship between income inequality and growth changes over time. Two time periods, covering 1970–1985 and 1985–1999, are analyzed and compared. A statistically significant relationship between inequality and growth in either time period fails to emerge. However, there are indications that effect of inequality on growth may be different in the nineties when compared to the seventies. In the literature, a consistent negative effect of inequality on growth is documented although the significance of the effect is open to debate. This paper also finds a negative effect of income inequality on growth in the seventies but, although statistically insignificant, a consistently positive effect in the nineties.

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In 2015, Turkey submitted its Intended Nationally Determined Contribution (INDC) to the United Nations Framework on Climate Change Convention (UNFCCC) before the Paris Conference of the Parties (COP 21), expressing its intention to decrease emissions level at a rate of 21% from business as usual. This emissions reduction target is important as it is the first one for Turkey. However, Turkey faces unemployment problems and needs to sustain its growth. In this study, an Environmentally Extended Social Accounting Matrix (SAM), based on 2012 Input-Output data, was created, emissions reduction potentials of the National Climate Change Action Plan (NCCAP) together with the INDC were calculated, and alternative policies to reduce emissions to the target level and to boost the economy were proposed separately. The study finds that both the preparation and implementation of the previous national documents are problematic, and that Turkey was not meticulous about implementation of the climate mitigation policies in the previous national documents. The study also finds that reaching the emissions target with the INDC policies seems impossible and more conceivable policies are needed, and recommends that the INDC target and document itself should be revised substantially.

The paper examines misalignment of the Turkish lira between 1998 to 2008. Misalignment, specifically overvaluation has been linked to fixed exchange rate regimes. By studying the case of Turkey during this period which covers both a fixed and floating exchange rate regime, we contribute to the literature on the relation between misalignment and exchange rate regimes. We first estimate the equilibrium real exchange rate for Turkey, then compute misalignment and finally test for structural breaks in the misalignment series. Through our tests we find three structural regimes which we call the pre-crisis period, the transition period and the post-crisis period. We find considerable overvaluation in first regime, which is when Turkey had a fixed exchange rate regime. This was not the case for the periods that had floating exchange rates. Thus, we conclude that overvalued currencies that have been linked to financial crises are a more serious concern for fixed exchange rate regimes.