Openness and Productivity Growth in Turkish Manufacturing
Abstract
This paper examines the dynamics of productivity growth in Turkish manufacturing industry before and after the liberalization of the economy. Using industry level data, the paper shows that the move from import-substituting industrialization to an outward-oriented strategy improved growth performance and it is productivity that is responsible for almost half of the growth in value added. There is also evidence that industries that face stronger competition after reform observed higher productivity growth rates whereas increased exports do not significantly affect productivity.
Keywords
Trade liberalization, total factor productivity growth, Turkey
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