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Productivity, Demographics, and Growth in Turkey: 2004-12

Author

Listed:
  • Murat Üngör

    (Central Bank of the Republic of Turkey, Research and Monetary Policy Department, Ankara, Turkey)

  • M. Koray Kalafatcılar

    (Central Bank of the Republic of Turkey, Research and Monetary Policy Department, Ankara, Turkey)

Abstract

Among all the OECD countries, Turkey had the second highest average annual GDP growth (measured in constant local currency) and the fifth highest average annual growth of purchasing power parity (PPP)-adjusted per capita income between 2004 and 2012. We study the sources of this high growth era, comparing Turkey with other OECD countries and breaking down GDP per capita into three components: labor productivity, the ratio of employment to the working-age population, and the ratio of the working-age population to the total population. Our findings suggest a productivity-based growth era in Turkey before the global crisis and an employment-based one in the post-crisis period. We then provide a detailed analysis of contributing factors to notable aspects of this economic expansion: the role of capital deepening and higher total factor productivity (TFP) in aggregate output per worker growth; and the rise in female employment, especially in the service sector.

Suggested Citation

  • Murat Üngör & M. Koray Kalafatcılar, 2014. "Productivity, Demographics, and Growth in Turkey: 2004-12," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 3(1), pages 23-56, January.
    • Handle: RePEc:tek:journl:v:3:y:2014:i:1:p:23-56
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    References listed on IDEAS

    as
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    Cited by:

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    Keywords

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    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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