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Relative Underperformance Alla Turca

Author

Listed:
  • Tasso Adamopoulos

    (York University)

  • Ahmet Akyol

    (York University)

Abstract

From 1960 to 2003, Turkey has underperformed relative to several Western economies, in terms of hours worked and output per hour. Our sectoral analysis illustrates two points. First, Turkey's large drop in hours is due to the fact that the substantial decline in agricultural hours has not been accompanied by a corresponding increase in nonagricultural market hours. Second, the sectoral composition of output is important for understanding Turkey's relatively weak rise in output per hour. We develop a simple model of structural transformation and home production to provide an account of Turkey's performance relative to the US and Southern Europe. We find that the evolution of exogenous differences in sectoral productivity and taxes, between Turkey and the US, as well as Southern Europe, can account quantitatively for most of Turkey's relative underperformance to these regions. (Copyright: Elsevier)

Suggested Citation

  • Tasso Adamopoulos & Ahmet Akyol, 2009. "Relative Underperformance Alla Turca," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(4), pages 697-717, October.
  • Handle: RePEc:red:issued:06-158
    DOI: 10.1016/j.red.2009.02.002
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    Cited by:

    1. Attar, M. Aykut, 2016. "Economic Growth and Technological Progress in Turkey: An Analysis of Schumpeterian Mechanisms," MPRA Paper 73255, University Library of Munich, Germany.
    2. Bahadir, Berrak & Gumus, Inci, 2016. "Credit decomposition and business cycles in emerging market economies," Journal of International Economics, Elsevier, vol. 103(C), pages 250-262.
    3. Margarida Duarte & Diego Restuccia, 2010. "The Role of the Structural Transformation in Aggregate Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 129-173.
    4. Hehe Liu & Tianyu Yang, 2015. "Explaining the Productivity Growth Gap Between China and India: The Role of Structural Transformation," The Developing Economies, Institute of Developing Economies, vol. 53(2), pages 100-121, June.
    5. Üngör, Murat, 2014. "Some thought experiments on the changes in labor supply in Turkey," Economic Modelling, Elsevier, vol. 39(C), pages 265-272.
    6. Altug, Sumru G. & Filiztekin, Alpay & Pamuk, Sevket, 2007. "The Sources of Long-term Economic Growth for Turkey, 1880-2005," CEPR Discussion Papers 6463, C.E.P.R. Discussion Papers.
    7. Idil Göksel, 2012. "The Reasons Of Decreasing Trend Of Female Labour Force Participation In Turkey: The Role Of Conservatism," Working Papers 1205, Izmir University of Economics.
    8. Murat Üngör, 2016. "Did the rising importance of services decelerate overall productivity improvement of Turkey during 2002–2007?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(3), pages 238-261, July.
    9. Bah El-hadj, 2013. "Distortions, structural transformation and the Europe-US income gap," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 1-34, September.

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    More about this item

    Keywords

    Income differences; Labor input differences; Structural transformation; Taxes; Turkey;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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