Patterns of Productivity Growth and the Wage Cycle In Turkish Manufacturing (original) (raw)
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Journal of Economic Cooperation and Development, vol. 27, no. 1, pp. 71-88 (January 2006)
This paper analyses the impact of structural changes in Turkish manufacturing employment on manufacturing productivity by decomposing aggregate manufacturing productivity growth for the period 1970-2000 into the contributions of individual industries and of labour reallocation among industries. The analysis is conducted for 19 manufacturing industries. The results show that before 1980, the government could effectively realise gains in aggregate productivity to some extent through the reallocations of manufacturing labour across industries in an import-substitution industrialisation policy. The export-oriented strategy (after 1980) which was accompanied by structural adjustment reforms that included a large-scale liberalisation first of the trade regime and later of the capital flows did not bring about the desired shifts of labour towards industries with higher labor productivity growth rates. The impact of the induced shifts of labour on aggregate labour productivity in the post-1980 period is negative.
Turkish Economy in the 2000S: Productivity Changes in the Manufacturing Industry
Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
This study aims to discuss the manufacturing and service sectors’ productivity performances of Turkey during the 2000s. In order to get some ideas how structural changes are directed during the 2000s in Turkish manufacturing, shift-share analysis is applied in this study. The results reflect that between 2003 and 2007, in all manufacturing categories, labor productivity has decreased while during the period between 2010 and 2015, labor productivity has increased in all manufacturing categories. Labor productivity further increased for all groups, but at a slower pace for medium-low-technology categories and stagnant for high-technology industries during the period between 2016 and 2018. Labor productivity in the service sector shows a somewhat different pattern than that seen in manufacturing in terms of periods. Particularly in high-tech service groups, the static shift toward relatively lower labor productivity sectors has been observed for almost all periods. In less-knowledge-in...
Turkish Economy in 2000s: The productivity changes in manufacturing industry
Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2021
This study aims to discuss the manufacturing and service sectors' productivity performances of Turkey during the 2000s. In order to get some ideas how structural changes are directed during the 2000s in Turkish manufacturing, shift-share analysis is applied in this study. The results reflect that between 2003 and 2007, in all manufacturing categories, labor productivity has decreased while during the period between 2010 and 2015, labor productivity has increased in all manufacturing categories. Labor productivity further increased for all groups, but at a slower pace for medium-low-technology categories and stagnant for high-technology industries during the period between 2016 and 2018. Labor productivity in the service sector shows a somewhat different pattern than that seen in manufacturing in terms of periods. Particularly in high-tech service groups, the static shift toward relatively lower labor productivity sectors has been observed for almost all periods. In less-knowledge-intensive services, labor productivity decreased in the first period, but increased most notably during the 2010-2015 period. The results supposedly imply that there is some room for discussion of the role of industrial policies, particularly in the post-2010 period. Moreover, after 2016, the change in the political and economic environment offers some clues in understanding the productivity changes in the manufacturing sector.
2008
This paper explores the distributional effects of post-1980 export-led growth policies on Turkish manufacturing. Categorization of manufacturing sub-sectors according to their orientations in international trade shows that, both wages and markups in exporting firms remained systematically below manufacturing average for the whole period. Effects of changes in export performance and import penetration on value-added categories are also investigated with dynamic panel estimations. Results show a significant and negative correlation between export performances and markups , while no statistically significant relationship between exports increases and real wage changes is found. Exporting firms need to maintain wages at the lowest possible level to keep competitiveness at international markets and wages are not affected by export performance. However, this does not necessarily bring higher profitability. Also considering the government incentives to exporting firms, it is concluded that, export-led growth strategy did not bring specialization in sectors of high value-added, in the Turkish case.
2022
In this work, the overall labor productivity evolution in the Turkish manufacturing industries for the period from 2010 to 2015 has been explored. The scaled sum of the within, between and covariance effects reflects the growth rate of labor productivity at the two-digit level. The study employed Baily et al. (1996) decomposition technique which operates on two stages. The first one employed the data of two-digit industries to quantify the impacts of between-and covariance-evolution. The second one has been applied to the four-digit industries covering the weights of within-industry, between-industry and cross-industry covariance evolution to quantify the two-digit within-evolution. The sum of the between and covariance effects reflect the contribution of the selection effect. To achieve our goal, we utilized data compiled by TSI that classified according to NACE Rev.2; namely the firms' value-added, the total full-time equivalent employment and the industry classification. Additionally, we eliminated the effect of inflation by using the Producer Price Index (PPI) for the mentioned period. The labor productivity is estimated by calculating real value added and then divided by the number of labors. Our outcomes revealed that the overall productivity evolution (0.20%) during the studied period is responsive to the within growth effect (0,88) and the covariance effect (0,42), whereas the between effect is low (-0,30). The relationship between the productivity evolution and the selection effect seems to be more prominent at the two-digit level compared to the four-digit level. That means that the structural change plays, to some extent, a significant role in the evolution of aggregate productivity at the two-digit level when compared to its contribution at the four-digit level. The between (-0,05) and the covariance (-0,03) effects at the firm level are negligible.
Structural Change and Growth Prospects in the Turkish Manufacturing Industry
Bulletin of Economic Theory and Analysis, 2020
The growth and development literature emphasize two sources of labor productivity growth. First, productivity improvements triggered by physical and human capital accumulation and technological change and second, productivity improvements arising from movements of resources towards high productivity industries, that is structural change. The effect of structural change may be productivity enhancing or may bring a drag on aggregate productivity. Empirical studies highlight growth enhancing structural change for newly industrialized Asian countries while indicates weak or growth reducing structural change for some Latin American and African countries. Moreover, these studies also highlight the importance of movements of resources within the manufacturing sub industries. The process of structural change and economic development of developed countries is well documented but studies about less developed or developing countries is very weak. In this respect this study aims to examine whether the Turkish economy fits into this picture of growthenhancing or reducing structural change? The conventional shift-share analysis is used in order to analyze the effect of structural change on the productivity of the manufacturing industry and the whole Turkish economy for the period of (2003-2017). The results suggest that on average, the within growth effect dominates labor productivity improvements whereas between growth and covariance effects account for very small parts of productivity growth for all the periods.
Manufacturing industry in Turkey has been considered as an engine of the economy to sustain rapid growth and structural change since the beginning of the Republic. The industry has indeed been superior to the total economy regarding the positive change in production (real GNP), employment and productivity during the last two decades. This study analyzes the structural change in different angles in Turkish manufacturing since 1970 and brings out some implications for the industrial policy applied for in the country. To do this, section 2 discusses the country's industrial policy shortly in a historical perspective. Section 3 discusses the characteristics of manufacturing industry in terms of value-added, output, investment, foreign trade, productivity, employment and skill formation in both aggregated and disaggregated levels.
Productivity and Growth Between 1980 and 2001: Turkish Manufacturing Industry
The objective of this study is to analyze and explain the factors influencing the value added growth in Turkish public and private manufacturing sectors during 1980-2001. With this aim in view, a Two-Deflator Growth Accounting (TDA) method is applied in the study. It is revealed that industries as a whole have positive value added growth with no negative contribution of capital. Although human capital's contribution to the industrial sector's growth as a whole and especially to public sector industries is not very significant, its contribution to the private sector industries remains significantly high. The overall contribution of raw labor is able to explain most of the contribution of labor to value-added growth in Turkish manufacturing industry during the period 1980-2001.
REGIONAL LABOUR PRODUCTIVITY GROWTH AND STRUCTURAL CHANGE IN TURKISH ECONOMY
REGIONAL LABOUR PRODUCTIVITY GROWTH AND STRUCTURAL CHANGE IN TURKISH ECONOMY, 2023
Structural change is labelled as the shift of resources from low productive sectors to those with high-value-added. The structural change process can stimulate the evolution of the economy by increasing productivity. This study examines structural change and the bases of labour productivity evolution in 26 regions of Turkey for 2010-2020 period. Therefore, the Shift-Share Analysis method was employed in the study. The TURKSTAT gross domestic product in chain-linked volume, index and percentage change (2009 = 100) and employment by kind of economic activity data were utilized. The consequences revealed that the within-sector effect is the primary basis of productivity evolution in 26 regions of Turkey. The structural change has a positive but minor bearing on total labour productivity evolution in almost all regions. The within-sector effect is more dominant in the agricultural sector, but the bearing of structural change is negative. Similarly, the within-sector effect is stronger in the regions' industrial sectors (except for TR71, TRA1, TRA2, TRB2). The bearing of structural change in the services sector was better than in other sectors. As a result, it has been observed that the labour force is not directed to high-valueadded sectors, particularly in the agricultural and industrial sectors, but the situation is better in the services sector.