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Structural transformation and sources of growth in Turkey

Author

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  • Ahmet Ihsan Kaya
  • Cumhur Çiçekçi

Abstract

This paper provides a comprehensive analysis of the supply and demand side of structural transformation in Turkey. Using the GGDC/UNU-WIDER Economic Transformation Database, we find that labour productivity improvements explain more than half of economic growth in the period 1980-2021. This is mainly thanks to within-sector productivity improvements, while the contribution of structural change declines over time. Time-series regression analysis shows that structural change is driven by per capita income growth and financial openness but is halted by trade integration.

Suggested Citation

  • Ahmet Ihsan Kaya & Cumhur Çiçekçi, 2023. "Structural transformation and sources of growth in Turkey," WIDER Working Paper Series wp-2023-71, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-71
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    References listed on IDEAS

    as
    1. Abbas Valadkhani, 2003. "How Many Jobs Were Lost With the Collapse of Ansett?," School of Economics and Finance Discussion Papers and Working Papers Series 137, School of Economics and Finance, Queensland University of Technology.
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    3. Leif van Neuss, 2019. "The Drivers Of Structural Change," Journal of Economic Surveys, Wiley Blackwell, vol. 33(1), pages 309-349, February.
    4. Ercan Uygur, 1997. "Export Policies and Export Performance: The Case of Turkey," Working Papers 9707, Economic Research Forum, revised 06 May 1997.
    5. Barlow, Robin & Senses, Fikret, 1995. "The Turkish export boom: Just reward or just lucky?," Journal of Development Economics, Elsevier, vol. 48(1), pages 111-133, October.
    6. World Bank, 2014. "Turkey’s Transitions : Integration, Inclusion, Institutions," World Bank Publications - Reports 20691, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Labour productivity; Structural transformation; Economic growth; Input–output; Economic linkages;
    All these keywords.

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