Structural Change and Industrial Policy in Turkey

İzak Atiyas and Ozan Bakis

Emerging Markets Finance and Trade, 2015, vol. 51, issue 6, 1209-1229

Abstract: We present evidence on structural change in Turkey and provide an overview of the evolution of industrial policy in the past three decades Turkey has experienced substantial growth in labor productivity in the past decade. About two-thirds of the increase in aggregate labor productivity arises from reallocation of employment from low- to high-productivity sectors and one-third from productivity increases within sectors. Decomposition of productivity growth using microdata also reveals an important contribution from reallocation. We also document substantial change in the composition of exports. We argue that structural change was not a direct result of selective industrial policy simply because the incentive system displayed little sectoral selectivity during the period when major structural change took place.

Date: 2015
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Working Paper: Structural Change and Industrial Policy in Turkey (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:51:y:2015:i:6:p:1209-1229

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DOI: 10.1080/1540496X.2015.1080523

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