Structural Change and Industrial Policy in Turkey - Economic Research Forum (ERF)

Structural Change and Industrial Policy in Turkey

Izak Atiyas and Ozan Bakis


Date:
November, 2013

NO.
803

Length:
45 pages

Topic:
L5. Regulation and Industrial Policy
L1. Market Structure, Firm Strategy, and Market Performance

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.

 

ملخص

تعرض هذه الورقة دليلا على تغير هيكلي في تركيا، وتقدم لمحة عامة عن تطور السياسة الصناعية في العقود الثلاثة الماضية. شهدت تركيا نموا كبيرا في إنتاجية العمل في العقد الماضي وارتبط هذا بتغيير جوهري في تكوين القيمة المضافة وفرص العمل سواء في الاقتصاد عموما أوداخل قطاع الصناعة التحويلية. وتناقش الورقة مساهمة إعادة تخصيص سواء كليا أوعلى المستوى الجزئي. ونقوم أيضا بتوثيق التغيير الجوهري في تركيبة الصادرات. تقييمنا هو أن التغيير الهيكلي لم يرتبط في المقام الأول مع السياسة الصناعية، وإذا كان هناك صلة فلأن نظام الحوافز اظهرت قليلا من الانتقائية القطاعية خلال الفترة التي حدتث فيها تغييرات هيكلية رئيسية. نقوم أيضا بمناقشة القيود المفروضة على نوعية النمو الأخيرة.
Research Fellows

Izak Atiyas

Associate Professor of Economics, Faculty of Arts and Sciences, Sabanci University


Ozan Bakis


Project

EVENTS

There are no Events PAST



Related Publications

Working Papers

Productivity, Structural Change and Skills Dynamics in Tunisia and Turkey

Gunes Arkadas Asik, Mohamed Ali Marouani, Michelle Marshalian and Ulas Karakoc

This article explores the contribution of the structural change and the skill upgrading of the ... read more


Working Papers

Price Synchronicity, Inter-Firm Networks, and Business Groups in the Middle East and North Africa

Michael Siemon

Business groups are an essential part of the political economy of almost all capitalist countries. ... read more


Working Papers

Consumer Preferences and Market Structure in Credit Card Markets: Evidence from Turkey

G. Gulsun Akin, Ahmet Faruk Aysan, Ezgi Özer and Levent Yildiran

Using a discrete choice random utility model and unique data from a nationwide consumer survey, ... read more