The aim of this study is to investigate the sources of growth in Turkey during the period 1923-2006. In the study, by constructing a Vector Autoregressive (VAR) model and using growth accounting method, i) the part of the output growth per employment resulting from capital accumulation and ii) the part that cannot be explained by capital accumulation, that is, the part resulting from the increase in productivity, are calculated. According to the findings of the study, unlike previous studies regarding Turkey it was made following three assessments: i) Output elasticity of capital is between 0.14 and 0.19, approximately, in Turkey. ii) Turkey's economic growth stemmed mainly from technological progress or productivity growth of workers rather than capital accumulation. iii) The contribution of capital per output growth is negative throughout the period and in some sub-periods. When sub-periods, are analyzed except for 1953-1963, the contribution of the productivity growth of the workers is greater than the contribution of capital per output growth. In periods when the contribution of capital per output growth was higher than in other periods, the economy grew at a smaller rate. The reasons for these different results obtained in the study were discussed. Findings of the study point out the importance of policies to raise the rate of growth of productivity of workers in Turkey.
Key words: Development, Growth, Growth Accounting, Sources of Growth, Economic History of Turkey. JEL Codes: O47, O53. Article Language: EnglishTurkish
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