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Sources of Structural Change and its Impact on Interdependence: An Input-Output Perspective for The Post-1980 Turkish Economy

Listed author(s):
  • Ebru Voyvoda

    ()

    (Department of Economics, Middle East Technical University, Turkey)

The objective of this study is to analyze the patterns of structural and technological movements in the post-1980 Turkish economy. This period is known to span the overall transformation of the Turkish economy from domestic demand-oriented import substitutionist industrialization to one with export-orientation and integration with the global commodity and financial markets. What was theoretically expected from the process of outward orientation, was that as the economy would be exposed to more competition and technological know-how in the global markets and rapid gains in productivity would be converted into an engine of growth through technological improvements. It is the purpose of this paper to analytically depict and decompose the output movements in Turkey from 1980 onwards. By doing so, it becomes possible to observe whether trade orientation has been (one of) the major stimulating factors of output growth. To this end, this study uses input-output tables and employs Structural Decomposition Analysis to decompose the output change in the economy into the fraction attributable to changes in technology, the fraction attributable to import penetration in intermediate demand and the fractions attributable to level and composition of final demand, both in terms of its domestic and foreign components.

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Paper provided by Economic Research Forum in its series Working Papers with number 507.

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Length: 15 pages
Date of creation: Dec 2009
Date of revision: Dec 2009
Publication status: Published by The Economic Research Forum (ERF)
Handle: RePEc:erg:wpaper:507
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  1. Ebru Voyvoda & A. Erinc Yeldan, 2001. "Patterns of Productivity Growth and the Wage Cycle in Turkish Manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(4), pages 375-396.
  2. J. Paul Dunne & Lawrence Edwards, 2006. "Trade Technology and Employment: A case Study of South Africa," Working Papers 0602, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  3. Skolka, Jiri, 1989. "Input-output structural decomposition analysis for Austria," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 45-66.
  4. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
  5. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
  6. James Riedel, 1976. "A Balanced-Growth Version of the Linkage Hypothesis: A Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 90(2), pages 319-322.
  7. Sanchez Choliz, Julio & Duarte, Rosa, 2006. "The effect of structural change on the self-reliance and interdependence of aggregate sectors: the case of Spain, 1980-1994," Structural Change and Economic Dynamics, Elsevier, vol. 17(1), pages 27-45, January.
  8. Henrik Jacobsen, 2000. "Energy Demand, Structural Change and Trade: A Decomposition Analysis of the Danish Manufacturing Industry," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 319-343.
  9. Erin Yeldan & Kivilcim Metin-…zcan & Ebru Voyvoda, 2000. "On the Patterns of Trade Liberalization, Oligopolistic Concentration and Profitablility : Reflections from Post-1980 Tukrish Manufacturing," Working Papers 0012, Department of Economics, Bilkent University.
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