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The Composition of Growth Matters : South Korea vs. Turkey

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  • Selen Andic

Abstract

[EN] Having a real GDP that compares to the half of Turkish GDP in 1970, South Korea caught up with Turkey in the late 1980s and then outpaced it. In this study, we aim to understand why the convergence experiences of the two countries differ by comparing them in terms of their GDP compositions. 2014 per capita nominal income of Turkey has been achieved around 2000 in Korea. Hence, the countries reached to similar levels of income after 35 to 40 years upon their adoption of export-led growth. However, “how” they have arrived at this level diverges. The findings indicate that Turkey has reached it by relatively high consumption, and low investment with subdued non-residential construction. [TR] 1970’de Turkiye ekonomisinin yaklasik yarisi buyuklugunde bir ekonomiye sahip olan Guney Kore, 1980’lerin sonunda Turkiye’yi yakalamis ve geride birakmistir. Bu calismada, ulkelerin GSYIH kompozisyonlari incelenerek neden iki ulkenin yakinsama sureclerinin farklilastigi tartisilmaktadir. Kore, Turkiye’nin 2014’deki nominal kisi basi gelir seviyesine 2000 senesinde ulasmistir. Yani, her iki ulke de ihracata dayali buyume modelini benimsemelerinden yaklasik 35-40 sene sonra benzer bir gelir seviyesine sahip olmustur. Ancak, ulkeler bu seviyeye “nasil” geldikleri acisindan ayrismaktadir. Bulgular, Turkiye’nin soz konusu seviyeye gorece yuksek tuketim, dusuk yatirim ve dusuk konut disi insaat kompozisyonu ile ulastigina isaret etmektedir.

Suggested Citation

  • Selen Andic, 2016. "The Composition of Growth Matters : South Korea vs. Turkey," CBT Research Notes in Economics 1629, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    • Handle: RePEc:tcb:econot:1629
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    References listed on IDEAS

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    4. World Bank, 2000. "Korea : Transition to a Knowledge-Based Economy," World Bank Publications - Reports 15256, The World Bank Group.
    5. Ms. Deniz O Igan & Mr. Heedon Kang, 2011. "Do Loan-To-Value and Debt-To-Income Limits Work? Evidence From Korea," IMF Working Papers 2011/297, International Monetary Fund.
    6. Kyuil Chung, 2009. "Household debt, the savings rate and monetary policy: the Korean experience," BIS Papers chapters, in: Bank for International Settlements (ed.), Household debt: implications for monetary policy and financial stability, volume 46, pages 83-94, Bank for International Settlements.
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