IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2023-71.html
   My bibliography  Save this paper

Structural transformation and sources of growth in Turkey

Author

Listed:
  • Ahmet Ihsan Kaya
  • Cumhur Çiçekçi

Abstract

This paper provides a comprehensive analysis of the supply and demand side of structural transformation in Turkey. Using the GGDC/UNU-WIDER Economic Transformation Database, we find that labour productivity improvements explain more than half of economic growth in the period 1980-2021. This is mainly thanks to within-sector productivity improvements, while the contribution of structural change declines over time. Time-series regression analysis shows that structural change is driven by per capita income growth and financial openness but is halted by trade integration.

Suggested Citation

  • Ahmet Ihsan Kaya & Cumhur Çiçekçi, 2023. "Structural transformation and sources of growth in Turkey," WIDER Working Paper Series wp-2023-71, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-71
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2023-71-structural-transformation-sources-growth-Turkey.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abbas Valadkhani, 2003. "How Many Jobs Were Lost With the Collapse of Ansett?," School of Economics and Finance Discussion Papers and Working Papers Series 137, School of Economics and Finance, Queensland University of Technology.
    2. Elif Tunali CALISKAN & Osman AYDOGUS, 2011. "Turkiye Ekonomisinde Endustriyel Buyumenin Kaynaklari: Girdi-Cikti Modeli ile Ampirik Bir Analiz (1985-2002)," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 11(4), pages 499-510.
    3. İsmail Tuncer & Maya WAFEK MOALLA, 2020. "Structural Change and Growth Prospects in the Turkish Manufacturing Industry," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 5(1), pages 1-19.
    4. Leif van Neuss, 2019. "The Drivers Of Structural Change," Journal of Economic Surveys, Wiley Blackwell, vol. 33(1), pages 309-349, February.
    5. Ercan Uygur, 1997. "Export Policies and Export Performance: The Case of Turkey," Working Papers 9707, Economic Research Forum, revised 06 May 1997.
    6. Hasan Olgun & S:ubidey Togan, 1991. "Trade liberalization and the structure of protection in Turkey in the 1980s: A quantitative analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(1), pages 152-170, March.
    7. World Bank, 1989. "World Development Report 1989," World Bank Publications - Books, The World Bank Group, number 5972, April.
    8. Barlow, Robin & Senses, Fikret, 1995. "The Turkish export boom: Just reward or just lucky?," Journal of Development Economics, Elsevier, vol. 48(1), pages 111-133, October.
    9. World Bank, 2014. "Turkey’s Transitions : Integration, Inclusion, Institutions," World Bank Publications - Reports 20691, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evren Erdogan Cosar, 2002. "Price and Income Elasticities of Turkish Export Demand : A Panel Data Application," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 2(2), pages 19-53.
    2. Honohan, Patrick & Vittas, Dimitri, 1996. "Bank regulation and the network paradigm : policy implications for developing and transition economies," Policy Research Working Paper Series 1631, The World Bank.
    3. Bangake, Chrysost & Eggoh, Jude C., 2011. "Further evidence on finance-growth causality: A panel data analysis," Economic Systems, Elsevier, vol. 35(2), pages 176-188, June.
    4. Dury, Sandrine & Lapenu, Cécile, 1995. "Évolution du système financier rural à Java -Indonésie-," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 227.
    5. Muhammad Farooq Arby & Muhammad Nadeem Hanif, 2010. "Monetary and Fiscal Policies Coordination: Pakistan’s Experience," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 6, pages 3-13.
    6. P. J. Dawson, 2003. "Financial development and growth in economies in transition," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 833-836.
    7. Matthias Hartmann & Helmut Herwartz & Yabibal M. Walle, 2012. "Where enterprise leads, finance follows. In-sample and out-of-sample evidence on the causal relation between finance and growth," Economics Bulletin, AccessEcon, vol. 32(1), pages 871-882.
    8. repec:ehl:wpaper:42878 is not listed on IDEAS
    9. Samuel Lee & Petra Persson, 2016. "Financing from Family and Friends," The Review of Financial Studies, Society for Financial Studies, vol. 29(9), pages 2341-2386.
    10. -, 1991. "CEPAL Review no.43," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Andres Erosa, 2001. "Financial Intermediation and Occupational Choice in Development," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 303-334, April.
    12. Clarke, George R. G. & Cull, Robert, 1999. "Why Privatize? The Case of Argentina's Public Provincial Banks," World Development, Elsevier, vol. 27(5), pages 865-886, May.
    13. Colombage, Sisira R.N., 2009. "Financial markets and economic performances: Empirical evidence from five industrialized economies," Research in International Business and Finance, Elsevier, vol. 23(3), pages 339-348, September.
    14. Abdur Chowdhury, 2001. "The Impact of Financial Reform on Private Savings in Bangladesh," WIDER Working Paper Series DP2001-78, World Institute for Development Economic Research (UNU-WIDER).
    15. Stijepic, Denis, 2019. "A topological approach to structural change analysis and an application to long-run labor allocation dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 453-462.
    16. Yongfu Huang, 2005. "What determines financial development?," Bristol Economics Discussion Papers 05/580, School of Economics, University of Bristol, UK.
    17. repec:ilo:ilowps:288872 is not listed on IDEAS
    18. Suleiman Abu-Bader & Aamer S. Abu-Qarn, 2005. "Financial Development And Economic Growth: Time Series Evidence From Egypt," Working Papers 0514, Ben-Gurion University of the Negev, Department of Economics.
    19. Ajit Singh, 1998. "Financial liberalisation, stockmarkets and economic development," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 8(1), pages 165-182.
    20. Jonas Rapsikevicius & Jurgita Bruneckiene & Mantas Lukauskas & Sarunas Mikalonis, 2021. "The Impact of Economic Freedom on Economic and Environmental Performance: Evidence from European Countries," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    21. International Monetary Fund, 1991. "Financial Sector Reforms and Monetary Policy," IMF Working Papers 1991/127, International Monetary Fund.
    22. Hosamane, Manjappa & Rajanna, Niranjan, 2010. "Financial Liberalization, Development and Industrial Growth: Evidence from India," MPRA Paper 55624, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp-2023-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.