Productivity and Growth in Turkish Manufacturing Industry: 1980–2001

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.