Using sectoral national accounts data we decompose aggregate productivity growth into productivity grıowth within sectors and porductivity growth arising from the reallocation of employment from low to high productivity arises from reallocation of employment. Decomposition of productivity growth using micro-data also reveals an important contribution from reallocation. We also document substantial change in the composition of exports. Regarding the role of industrial policy, our assessment is that structural change was not a direct result of selectivity during the period when major structural change took place. We also discuss the limitations of the quality of recent growth.
Sabancı University-TÜSİAD Competitiveness Forum; "Structural Change and Industrial Policy in Turkey" Working Paper
This paper presents evidence on structural change in Turkey and provides an overview of the evolution of industrial policy in the last three decades. We show that Turkey has experienced substantial growth in labor productivity in the last decade and that 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.