Update: Normalized CES Production Function for Turkey

Selen Andic

CBT Research Notes in Economics from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: [EN] This study re-estimates the normalized CES production function for Turkey with the revised GDP data. It employs a supply-side system of equations, which incorporates the production function and two first-order conditions. Results indicate that the elasticity of substitution is 0.6 and still significantly below 1. Labor has a positive but slowing productivity growth while capital has a falling productivity. Labor-augmenting technical progress is dominant in the long run as the total factor productivity growth is positive. The revised data implies a higher potential growth for Turkey compared to the old data. Strong capital accumulation and improvement in the productivity seem to be the reasons for the change in potential growth. [TR] Bu calisma, normalize edilmis sabit ikame esneklikli uretim fonksiyonunu Turkiye’nin revize edilmis milli gelir verileriyle tekrar tahmin etmeyi amaclamaktadir. Bunu yaparken, uretim fonksiyonu ve iki adet birinci derece kosullarindan olusan arz yonlu bir denklem sistemi kullanilmistir. Sonuclar, ikame esnekliginin 0,6 ile 1’in hala anlamli bir sekilde altinda oldugunu gostermektedir. Isgucu verimliligi yavaslayarak artmakta, sermaye verimliligi ise azalmaktadir. Uzun vadede isgucu verimliliginin sermaye verimliligine kiyasla baskin oldugu bulunmakta, bu durum ekonomi genelindeki verimlilik buyumesinin pozitif olmasinda kendini gostermektedir. Revize edilmis veri, eski veriye kiyasla, Turkiye’de potansiyel buyumenin arttigini ortaya koymaktadir. Bu artisin sebebi, guclu sermaye birikimi ve verimlilikteki iyilesme olarak gozukmektedir.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:econot:1713

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