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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
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    5. Leif van Neuss, 2019. "The Drivers Of Structural Change," Journal of Economic Surveys, Wiley Blackwell, vol. 33(1), pages 309-349, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Labour productivity; Structural transformation; Economic growth; Input–output; Economic linkages;
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