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Structural Change and Industrial Policy in Turkey

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  • Izak Atiyas

    (Sabanci University and Tusiad-Sabanci University Competitiveness Forum)

  • Ozan Bakis

Abstract

This paper presents evidence on structural change in Turkey and provides an overview of the evolution of industrial policy in the last three decades. Turkey has experienced substantial growth in labor productivity in the last decade and this has been associated with substantial change in the composition of value added and employment both in the overall economy and within the manufacturing industry. The paper discusses the contribution of reallocation both at the macro and the micro level. We also document substantial change in the composition of exports. Our assessment is that structural change was not primarily associated with industrial policy, if anything because the incentive system displayed little sectoral selectivity during the period when major structural change took place. We also discuss the limitations of the quality of recent growth.

Suggested Citation

  • Izak Atiyas & Ozan Bakis, 2013. "Structural Change and Industrial Policy in Turkey," Working Papers 803, Economic Research Forum, revised Nov 2013.
    • Handle: RePEc:erg:wpaper:803
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    References listed on IDEAS

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    1. Taymaz, Erol & Yilmaz, Kamil, 2006. "Productivity and Trade Orientation: Turkish Manufacturing Industry Before and After the Customs Union," MPRA Paper 58843, University Library of Munich, Germany, revised 2007.
    2. Philippe Aghion & Jing Cai & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2022. "Industrial Policy and Competition," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 15, pages 349-380, World Scientific Publishing Co. Pte. Ltd..
    3. İzak Atiyas & Ozan Bakis, 2015. "Structural Change and Industrial Policy in Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(6), pages 1209-1229, November.
    4. Asaf Akat & Ege Yazgan, 2013. "Observations on Turkey’s Recent Economic Performance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(1), pages 1-27, March.
    5. Hausmann, Ricardo & Hidalgo, Cesar A., 2010. "Country Diversification, Product Ubiquity, and Economic Divergence," Working Paper Series rwp10-045, Harvard University, John F. Kennedy School of Government.
    6. Erol Taymaz & Kamil Yılmaz, 2008. "Integration with the Global Economy: The Case of Turkish Automobile and Consumer Electronics Industries," Koç University-TUSIAD Economic Research Forum Working Papers 0801, Koc University-TUSIAD Economic Research Forum.
    7. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    8. Betcherman, Gordon & Daysal, N. Meltem & Pagés, Carmen, 2010. "Do employment subsidies work? Evidence from regionally targeted subsidies in Turkey," Labour Economics, Elsevier, vol. 17(4), pages 710-722, August.
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    10. World Bank, 2009. "Turkey - National Innovation and Technology System : Recent Progress and Ongoing Challenges," World Bank Publications - Reports 18612, The World Bank Group.
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    Citations

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    Cited by:

    1. Halit Yanikkaya & Hasan Karaboga, 2017. "The Effectiveness of Investment Incentives in the Turkish Manufacturing Industry," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(6), pages 744-760.
    2. repec:prg:jnlpep:v:preprint:id:641:p:1-17 is not listed on IDEAS
    3. Izak Atiyas & Ozan Bakis & Esra Ceviker Gurakar, 2016. "Anatolian Tigers and the Emergence of the Devout Bourgeoisie in the Turkish Manufacturing Industry: An Empirical Analysis," Working Papers 1064, Economic Research Forum, revised 11 2016.
    4. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
    5. Dincer, Nergiz & Tekin-Koru, Ayca, 2019. "An Anatomy of Productivity in Turkey in the AKP Era through a Political Economy Lens," MPRA Paper 96844, University Library of Munich, Germany.
    6. Balcilar, Mehmet & Kutan, Ali M. & Yaya, Mehmet E., 2017. "Testing the dependency theory on small island economies: The case of Cyprus," Economic Modelling, Elsevier, vol. 61(C), pages 1-11.
    7. Ishac Diwan & Jamal Ibrahim Haidar, 2021. "Political Connections Reduce Job Creation: Firm-level Evidence from Lebanon," Journal of Development Studies, Taylor & Francis Journals, vol. 57(8), pages 1373-1396, August.
    8. Nazire Nergiz Dincer & Barry Eichengreen & Ayça Tekin‐Koru, 2022. "Manufacturing and service‐sector productivity in Turkey: A perspective from firm‐level data," The World Economy, Wiley Blackwell, vol. 45(9), pages 2698-2723, September.
    9. Faisal, Faisal & Sulaiman, Yasir & Tursoy, Turgut, 2019. "Does an asymmetric nexus exist between financial deepening and natural resources for emerging economy? Evidence from multiple break cointegration test," Resources Policy, Elsevier, vol. 64(C).
    10. Ali Burak Güven, 2016. "Rethinking Development Space in Emerging Countries: Turkey's Conservative Countermovement," Development and Change, International Institute of Social Studies, vol. 47(5), pages 995-1024, September.
    11. İzak Atiyas & Ozan Bakis, 2015. "Structural Change and Industrial Policy in Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(6), pages 1209-1229, November.
    12. Diwan, Ishac & Jamal Ibrahim Haidar, "undated". "Do Political Connections Reduce Job Creation? Evidence from Lebanon," Working Paper 414186, Harvard University OpenScholar.
    13. Sharif, Arshian & Baris-Tuzemen, Ozge & Uzuner, Gizem & Ozturk, Ilhan & Sinha, Avik, 2020. "Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach," MPRA Paper 100044, University Library of Munich, Germany.
    14. Rim Ben Ayed Mouelhi & Monia Ghazali, 2021. "Structural transformation in Egypt, Morocco and Tunisia: Patterns, drivers and constraints," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(1), pages 35-61, January.

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