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Resource misallocation in Turkey

Author

Listed:
  • Nguyen,Ha Minh
  • Taskin,Temel
  • Yilmaz,Ayberk

Abstract

This paper examines resource misallocation within narrow industries in Turkey. It finds that resource misallocation in Turkey is substantial. The hypothetical gain from moving to"U.S. efficiency"is 24.5 percent of manufacturing total factor productivity in 2014. The evolution of resource misallocation over time and across disaggregated sectors is also examined. Improvement in allocative efficiency was sizable between 2003 and 2013, but significantly slower after 2007. However, the earlier trend reversed in 2014 and resource misallocation worsened in Turkey's manufacturing. The cross-sector analysis reveals that misallocation is most pronounced in textiles, transport, food, and leather.

Suggested Citation

  • Nguyen,Ha Minh & Taskin,Temel & Yilmaz,Ayberk, 2016. "Resource misallocation in Turkey," Policy Research Working Paper Series 7780, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7780
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    Cited by:

    1. Lyu, Yanwei & Wu, You & Zhang, Jinning, 2023. "How industrial structure distortion affects energy poverty? Evidence from China," Energy, Elsevier, vol. 278(C).
    2. World Bank Group, 2016. "Malaysia Economic Monitor, December 2016," World Bank Publications - Reports 25857, The World Bank Group.
    3. Eleftherios Giovanis & Oznur Ozdamar, 2018. "Productivity and Resource Misallocation: Evidence from Firms in Middle East and North Africa (MENA) Region Countries," Working Papers 1266, Economic Research Forum, revised 10 Dec 2018.
    4. World Bank, 2018. "Growth and Productivity in the Philippines," World Bank Publications - Reports 30450, The World Bank Group.

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