Government effects on the Turkish construction industry

It has long been known that, the two-way interaction between the construction sector and the overall economy should be examined in order to generate effective solutions to attain the government objectives and make realistic forecasts related to sectoral outputs. Due to direct and indirect resource utilisation by the construction industry, governments perceive construction activity as an accelerator for economic growth. The Turkish construction industry produces around 6% of the GNP and is responsible for approximately 46% of fixed capital formation. Due to the construction sector’s potential to bring foreign exchange to local markets as a result of works carried out abroad and strong input-output relations with the rest of the economy, it appears to be one of the leading sectors of the Turkish economy. The aim of this paper is twofold: Initially, the construction industry’s contribution to the Turkish economy will be emphasised by analysing the macroeconomic data and related economic indicators. As a second step, possible government effects on the construction industry will be discussed and methods of improving sectoral output and maximisation of government objectives related with refinements in the tax/incentive system, tendering and award mechanisms and private sector participation models will be analysed by emphasising the Turkish practice.
Joint Triennial Symposium, CIB Commissions W55 and W65, TG 31, (5 - 10 Eylül 1999)


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Citation Formats
M. T. Birgönül and İ. Dikmen Toker, “Government effects on the Turkish construction industry,” presented at the Joint Triennial Symposium, CIB Commissions W55 and W65, TG 31, (5 - 10 Eylül 1999), 1999, Accessed: 00, 2021. [Online]. Available: