The Effects of Economic Policy Choices on Industrialization in Turkiye

Abstract

This study examines the impact of Turkiye's economic policy choices on industrialization since the Global Crisis. For the study period, TurkStat and World Bank data on the main industrial sector indicators such as production, value added, exports and imports, and technology intensity were used. The study concludes that such choices were shaped in parallel with the global economy until 2019. In terms of the second observation, the relationship between economic policy preferences and industrialization, industrialization increases during periods of protectionist economic policies, and although the industrial sector loses its top priority during periods of liberal economic policies, increased integration with the world economy and private sector entrepreneurship add momentum to industrialization. The third observation is that the structural problems of the Turkish economy lead to economic instability and adversely affect industrialization, regardless of the choice of economic policy. The fourth observation is that after the Global Crisis of 2008, global competition has been increasingly based on technology, an area where Turkiye lags behind. Aiming for short-term economic growth through wrong macroeconomic policy choices, the country moves away from ensuring long-term economic growth and economic development through industrialization based on technological development, and the whole economy faces increasing risks.

Keywords

• industrialization
• Economic policy
• Turkish economy
• Economic Development

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