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Resurgence of Selective Industrial Policy: What Turkey Needs


  • Gokhan Yilmaz

    (Central Bank of Turkey)


Three decades of Turkish experience with nonselective industrial policies (consistent with neoliberal policy) clearly demonstrates that structural transformation in Turkish economy could not be achieved. In this paper, we have three motivations. Our first motivation is to discuss overall industrial policy developments in Turkey since 1980s. Secondly, we aim to recommend feasible selective industrial policies for Turkey to support structural transformation. Thirdly, we comment on new Industrial Policy Strategy in Turkey. In that respect, our three basic research questions are, firstly, “is there still any meaningful space to implement industrial policy in developing countries such as Turkey?”, secondly, “which policies could be used?” and thirdly, “what are the main shortcomings of new Industrial Policy Strategy in Turkey?”. Our research demonstrates that there is still meaningful space to implement selective industrial policy in developing countries such as Turkey. Moreover, new Turkish Industrialization Strategy needs significant revisions if it genuinely aims at structural transformation in Turkey.

Suggested Citation

  • Gokhan Yilmaz, 2011. "Resurgence of Selective Industrial Policy: What Turkey Needs," Working Papers 2011/3, Turkish Economic Association.
  • Handle: RePEc:tek:wpaper:2011/3

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    References listed on IDEAS

    1. Chang, Ha-Joon, 2006. "Industrial policy in East Asia - lessons for Europe," EIB Papers 11/2006, European Investment Bank, Economics Department.
    2. Mehdi SHAFAEDDIN, 1998. "How Did Developed Countries Industrialize? The History Of Trade And Industrial Policy: The Cases Of Great Britain And The Usa," UNCTAD Discussion Papers 139, United Nations Conference on Trade and Development.
    3. Irfan ul Haque, 2007. "Rethinking Industrial Policy," UNCTAD Discussion Papers 183, United Nations Conference on Trade and Development.
    4. Ha-Joon Chang, 2010. "Industrial Policy: Can We Go Beyond an Unproductive Confrontation?," Working Papers 2010/1, Turkish Economic Association.
    5. Shafaeddin, Mehdi, 2006. "Is The Industrial Policy Relevant In The 21st Century?," MPRA Paper 6643, University Library of Munich, Germany.
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    More about this item


    Turkey; Industrial Policy; Structural Transformation; Economic Growth.;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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