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Economic growth is defined as the long-term expansion of an economy's production capacity. Economic growth has been linked to with various factors throughout history. One of these factors is the increase in manufacturing industry production. Kaldor was the first economist to empirically investigate the relationship between industry and economic growth. The first law of Kaldor's growth theory claims that the manufacturing industry is the engine of economic growth. The aim of this paper is to test the validity of the law in Turkey, using annual data for the period 1986-2018. In the study, a time series analysis was carried out by dividing the industry sector into sub-sectors. The findings of the research indicate that there is a positive relationship between manufacturing industrial sector and the economic growth. In this context, it has been determined that an increase by 1% in manufacturing industry production raised the economic growth by 0.62%.

The Relationship Between Industrialization and Growth in the Framework of Kaldor’s First Law