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Structural Reforms to Boost Turkey's Long-Term Growth

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Author Info

  • Rauf Gönenç
  • Oliver Röhn
  • Vincent Koen
  • Şeref Saygili

Abstract

Turkey can achieve strong sustainable growth and job creation but further reforms in the labour market, education and product markets are required for such gains to materialise. In recent years, growth has been largely driven by the industrial catch-up of Anatolian regions, although the Marmara area in the West has also been very dynamic. In the process, labour force participation has started to rise anew, but around one third of new low-skilled jobs have been created in the informal sector. Sustaining vigorous growth over the longer run therefore requires pushing ahead with a number of structural reforms. First, Turkey’s rigid labour market regulation needs to evolve, so as to encourage job creation in the formal sector. Second, further progress with education reform, from pre-school all the way to the tertiary level and vocational training, is needed to boost growth and bring about employment gains in the formal sector. Third, implementing product market reforms, notably in network industries, would unleash productivity gains in those sectors and be a boost to the rest of the economy. A set of alternative growth scenarios through 2030 illustrates how progress on these various fronts can deliver lasting improvements in living standards. This Working Paper relates to the 2012 OECD Economic Survey of Turkey (www.oecd.org/eco/surveys/turkey). Des réformes structurelles pour stimuler la croissance à long terme en Turquie La Turquie a les moyens d’une croissance rapide et durable riche en emplois, mais des réformes s’imposent en matière de – marché du travail, d’éducation et de marchés de produits –pour que ce potentiel se concrétise. Le rattrapage industriel des régions d’Anatolie a largement tiré la croissance de ces dernières années, même si la région de Marmara, à l’ouest, a elle aussi été très dynamique. Accompagnant ce processus, la participation au marché du travail est repartie à la hausse, mais environ un tiers des nouveaux emplois peu qualifiés ont été créés dans l’économie informelle. Maintenir un rythme de croissance vigoureux sur longue période nécessite donc de faire avancer un certain nombre de réformes structurelles. Tout d’abord, la réglementation du marché du travail, rigide, doit évoluer de façon à encourager la création d’emplois dans l’économie formelle. Ensuite, il faut aller plus loin encore dans les réformes de l’éducation, de l’enseignement préscolaire à l’enseignement supérieur et à la formation professionnelle, pour dynamiser la croissance et favoriser les créations d’emplois dans le secteur formel. Enfin, la mise en oeuvre de réformes des marchés de produits, notamment dans les industries de réseau, devrait permettre de libérer des gains de productivité dans ces secteurs et insuffler une dynamique au reste de l’économie. Différents scénarios de croissance à l’horizon 2030 montrent comment les avancées sur ces différents fronts peuvent engendrer une amélioration durable du niveau de vie. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Turquie, 2012 (www.oecd.org/eco/surveys/turkey).

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 987.

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Date of creation: 13 Sep 2012
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Handle: RePEc:oec:ecoaaa:987-en

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Related research

Keywords: growth; employment protection legislation; competition; productivity; education; Turkey; labour market; informality; informalité; Turquie; marché du travail; éducation; concurrence; croissance; législation sur la protection de l'emploi; productivité;

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Cited by:
  1. Nurrachmi, Rininta Nurrachmi & Abd Samad, Khairunnisa & Foughali, Ibrahim, 2012. "The Development of SMEs in Turkey," MPRA Paper 46817, University Library of Munich, Germany.
  2. Dutz, Mark A., 2013. "Resource reallocation and innovation : converting enterprise risks into opportunities," Policy Research Working Paper Series 6534, The World Bank.

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