Business

Turkey: Syrian migration affected firm performance and market structure

The Central Bank of the Republic of Turkey, in its “Working Papers” study, stated that as a result of the Syrian migration shock, existing companies grew and new companies were established.

A study on the “Effects of Syrian Migration on Firm Performance and Market Structure” was published in the “Working Papers” section of the website of the Central Bank of the Republic of Turkey (CBRT).

In the study, in which the impact of Syrian migration on firm performance and market structure was analyzed using administrative registry data for all companies in Turkey, it was stated that existing companies grew and new companies were established as a result of the migration shock.

The study included the following evaluations:

“In terms of quantity, the 10% increase in the immigrant-local population increases the average firm sales by 4% and the number of registered firms by 5%. Newly established firms are small firms and consequently, their market concentration has decreased. As a result of the migration, the possibility of exporting and the variety of exported products have increased.

The decrease observed in export prices indicates that the increase in exports can be explained by an increase in the competitiveness of the firms in the region.

In the study, a higher increase was found in export and product variety to the Middle East and North Africa (MENA) countries compared to EU countries, but it was observed that the exported product prices changed similarly for both regions. This points to the presence of a network effect rather than a cost advantage.”

Source: AA / Translated by Irem Yildiz

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