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Regional Technological Learning in Turkish Cement Industry

Author

Listed:
  • Gurkan Calmasur

    (Erzurum Technical University, Turkey)

  • Meryem Emre Aysin

    (Erzurum Technical University, Turkey)

Abstract

The learning curve reflects the reduction in average costs as the company's cumulative production increases. These curves are utilized when measuring company performance, managing production processes, and planning. In terms of cost reduction and profitability, the impact of learning is particularly important. The learning curves have been traditionally used in industries. In this study, the learning curves concerning the cement industry are examined. The cement sector inherits a high export potential in Turkey. Additionally, it is the industry branch that supplies the raw materials needed by countries' construction industries. On the other hand, the construction sector is a leading sector that mobilizes other markets. This sector is a major contributor to production, investment, and employment and plays a vital role in the development of the country. This paper aims to make a detailed analysis of the learning curves regarding the Turkish cement industry at the regional level covering the 2000-2018 period. In order to realize this aim, the linear and cubic learning models have been applied and the technological learning values for regions from 2000 to 2018 have been calculated. For the analysis, data of 68 factories operating in the Turkish cement industry obtained from Turkey Cement Manufacturers' Association have been used. The estimated results suggest that cubic models explain technological learning better than the linear models. The results indicated that learning levels differed across regions and times. While the highest learning level was observed in 2004, the highest level of forgetting was recorded in 2018. Finally, we can state that the learning curve of the Turkish cement industry between 2000 and 2018 is convex.

Suggested Citation

  • Gurkan Calmasur & Meryem Emre Aysin, 2020. "Regional Technological Learning in Turkish Cement Industry," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(4), pages 204-216.
    • Handle: RePEc:ejn:ejefjr:v:8:y:2020:i:4:p:204-216
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    References listed on IDEAS

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