Economic growth and technological progress in Turkey: An analysis of Schumpeterian mechanisms

Download

914-5840-1-PB.pdf

Date

2017-8

Author

Attar, M. Aykut

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

275
views

274
downloads

This paper studies a second-generation Schumpeterian model to understand the nature of technological progress and economic growth in Turkey. It identifies some structural parameters numerically and tests whether certain Schumpeterian mechanisms work. Results show that both horizontal (product) and vertical (process) innovation channels operate as determined in theory. However, the pace at which vertical (process) innovation occurs is extremely low, implying that its contribution to long-run productivity growth is severely limited. Since the paper directly estimates the structural forms originating from the general equilibrium of the model economy, results do not carry any endogeneity bias. That the technological landscape very slowly expands in its vertical dimension explains why the Turkish economy did not converge to frontier economies. Since whether a firm should engage in vertical (process) innovation crucially depends on its size in theory, the most appropriate policy under resource constraints may be to strengthen the incumbent firms and support their growth. Put differently, the formation of new enterprises in the horizontal dimension may not be a policy priority.

Subject Keywords

R&D, Entry, Process innovation, Product innovation, Productivity, Policy

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/914
https://hdl.handle.net/11511/58164

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

Economic Crises in Turkey and Pathways to the Future Çınar, Süleyman Kürşat (2015-04-03) This paper investigates the Turkish economy within a comparative historical framework. In light of a thorough discussion of Turkish economic crises in the post-1980 period, the paper explores Turkey's contemporary strengths and weaknesses in the global economic arena by comparing it with its peers and developed nations. The paper also highlights Turkey's extant economic vulnerabilities, especially its current account deficit, volatile international capital flows and ongoing banking sector problems. Along wi...
Technological innovation activities in Turkey: the case of manufacturing industry, 1995-1997 Uzun, A (2001-03-01) This paper is based on the initial findings of a nation-wide survey of technological innovation activities of 2100 firms in Turkish manufacturing industry. Our findings show that the innovation activities are more widespread in the firms having large sizes of employment. In some sectors of manufacturing industry 60-80% of the firms undertake innovation activities. Improving the product quality and opening up new markets rank at the top of the main objectives of innovation activities. In-house R&D turn out t...
Sociological analysis of new trends in vocational education and training (vet) in Turkey Özaltan, Aslı; Kalaycıoğlu, Hediye Sibel; Department of Sociology (2010) The aim of this study is to put forth the relationship between the transformation of the labor market and the production process and the vocational education and training in Turkey. The Study will reflect the effects of transformation on the individual and society. The research is conducted through interviews with social partners. The study touches upon the reflection of the understanding of new vocationalism adopted in line with the flexibilisation in the organization of work on the vocational and technica...
Institutional Environment, Economic Performance and Innovation in Turkey Erdil, Erkan; Pamukcu, Mehmet Teoman (2015-01-01) This paper investigates the relationship between economic performance and innovation in Turkey, while also taking into account the crucial mediating effect of the institutional environment. We carry out an in-depth analysis of the recent shifts in STI policy-making in Turkey. The emphasis is on the innovation support policy instruments, and their effectiveness, as well as on the formulation of national STI targets, sector priorities and targets in the field of human resources. A number of concerns are expre...
Economic growth and financial development in Turkey: new evidence Soytaş, Uğur (Informa UK Limited, 2011-01-01) We examine the link between financial development and economic growth in Turkey for the period 1991 to 2005 using quarterly data. We use relatively new time series techniques that are less prone to bias to examine this relationship. We also construct a comprehensive financial development index using principal component analysis. When we control for the possible effects of inflation and monetary and fiscal policies on monetary aggregates and the economic growth rate, we fail to find any long-run causality in...

Citation Formats

M. A. Attar, “Economic growth and technological progress in Turkey: An analysis of Schumpeterian mechanisms,” ODTÜ Gelişme Dergisi, vol. 44, no. 2, pp. 129–154, 2017, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/914.