On the basis of general economic equilibrium, sources of economic growth are divided into two groups such as supply side factors and demand side factors. Generally accounting growth model is used to determine partial growth impacts of supply side factors on economic growth while decomposition models are advised to analyse demand side factors of economic growth. This study aims to determine the demand sources of economic growth in Turkish Economy between 1996 and 2011 by using decomposition model. To break down the economic effects into change its components (domestic demand, export, intermediate input demand and import substution) 1996 and 2011 Turkish National Input Output Tables published by World Input Output Database have been used. With regard to empirical findings, economic growth has been occurred based on domestic final demand in this period. Despite the fact that it varies according to sectors, domestic final demand has led to significant effects in most of the sectors. Intermediate inputs effects were found positive in some of the sectors and negative in others. While import substitution effects are negative in most of the sectors, export effects found as positive in all sectors.
Key words: Turkish Economy, Decomposition Model, Demand Sources of the Economic Growth. JEL Code: O10 Article Language: EnglishTurkish
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