Productivity and openness in Turkish economy

Abstract

A growth accounting and an econometric exercise are used to provide insights into the evolution o f the Turkish economy over the period 1968-1997. The growth accounting results show that the contribution o f total factor productivity to GDP growth averaged about 20 percent over the period, and this contribution reached its maximum level in the trade liberalization period. My results suggest that trade liberalization has better effects on total factor productivity growth. As a result o f nonparametric analysis I found a positive relation between openness and productivity growth.