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Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth

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  • Mahmut Yasar
  • Roderick Rejesus
  • Ilhami Mintemur

Abstract

This paper examines the Schumpeterian creative destruction process by decomposing and analysing aggregate industry-level productivity growth in three Turkish manufacturing industries. The results are somewhat supportive of the Schumpeterian hypothesis given that the productivity effects within plants contributed the most to the aggregate level productivity growth. However, the results generally contradict the insight that plants entering the market have higher productivity than plants that exit the market. This supports Caballero and Hammour's (NBER Working Paper No. 7720, 2000) arguments that institutional and market constraints may interfere with the proper functioning of Schumpeter's creative destruction process.

Suggested Citation

  • Mahmut Yasar & Roderick Rejesus & Ilhami Mintemur, 2004. "Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1937-1945.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1937-1945
    DOI: 10.1080/000368404200068610
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    References listed on IDEAS

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    Cited by:

    1. Erol Taymaz & Ebru Voyvoda & Kamil Yilmaz, 2008. "Turkiye Imalat Sanayiinde Yapisal Dönüsüm ve Teknolojik Degisme Dinamikleri," ERC Working Papers 0804, ERC - Economic Research Center, Middle East Technical University, revised Jun 2008.
    2. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.

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