Implications of exogenous income shock on economic well-being in north cyprus: CGE model approach

Abstract

The objective of this paper is to analyze the influence consequences of unskilled labor outmigration and resulted external income on economic well-being. The first general equilibrium model describing the economic activities in North Cyprus is constructed to be used for implementing the effect of particular shocks on economic well-being. The empirical analysis reveals that despite positive effects on demand side, supply side of the economy is worsened and output decreased by 3.78% in real terms in 2011. © Nuru Giritli, Sevin Ugural, 2013.