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Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth

  • Mahmut Yasar
  • Roderick Rejesus
  • Ilhami Mintemur

This paper examines the Schumpeterian creative destruction process by decomposing and analysing aggregate industry-level productivity growth in three Turkish manufacturing industries. The results are somewhat supportive of the Schumpeterian hypothesis given that the productivity effects within plants contributed the most to the aggregate level productivity growth. However, the results generally contradict the insight that plants entering the market have higher productivity than plants that exit the market. This supports Caballero and Hammour's (NBER Working Paper No. 7720, 2000) arguments that institutional and market constraints may interfere with the proper functioning of Schumpeter's creative destruction process.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 17 ()
Pages: 1937-1945

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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1937-1945
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  1. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
  2. Lucia Foster & John Haltiwanger & C.J. Krizan, 1998. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Working Papers 6803, National Bureau of Economic Research, Inc.
  3. G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
  4. Martin Neil Baily & Eric J. Bartelsman & John Haltiwanger, 1998. "Labor Productivity: Structural Change and Cyclical Dynamics," Working Papers 98-7, Center for Economic Studies, U.S. Census Bureau.
  5. Bartelsman, E.J. & Dhrymes, P.J., 1991. "Productivity Dynamics: US Manufacturing Plants, 1972-1986," Discussion Papers 1991_50, Columbia University, Department of Economics.
  6. Baily, Martin Neil & Bartelsman, Eric J & Haltiwanger, John, 1996. " Downsizing and Productivity Growth: Myth or Reality?," Small Business Economics, Springer, vol. 8(4), pages 259-78, August.
  7. Okamoto, Yumiko & Sjöholm, Fredrik, 1999. "FDI and the Dynamics of Productivity: Microeconomic Evidence," SSE/EFI Working Paper Series in Economics and Finance 348, Stockholm School of Economics.
  8. Good, D. & Nadiri, M.I. & Sickles, R., 1996. "Index Number and Factor Demand Approaches to the Estimarion of Productivity," Working Papers 96-34, C.V. Starr Center for Applied Economics, New York University.
  9. Bee Yan Aw & Sukkyun Chung & Mark J. Roberts, 1998. "Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea," NBER Working Papers 6558, National Bureau of Economic Research, Inc.
  10. Aw, Bee Yan & Chen, Xiaomin & Roberts, Mark J., 2001. "Firm-level evidence on productivity differentials and turnover in Taiwanese manufacturing," Journal of Development Economics, Elsevier, vol. 66(1), pages 51-86, October.
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