OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Structural Reforms to Boost Turkey's Long-Term Growth You or your institution have access to this content

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Author(s):
Rauf Gönenç1, Oliver Röhn1, Vincent Koen1, Şeref Saygili1
Author Affiliations
  • 1: OECD, France

Publication Date
13 Sep 2012
Bibliographic information
No.:
987
Pages
33
DOI
10.1787/5k92smv7cnjl-en

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Turkey can achieve strong sustainable growth and job creation but further reforms in the labour market, education and product markets are required for such gains to materialise. In recent years, growth has been largely driven by the industrial catch-up of Anatolian regions, although the Marmara area in the West has also been very dynamic. In the process, labour force participation has started to rise anew, but around one third of new low-skilled jobs have been created in the informal sector. Sustaining vigorous growth over the longer run therefore requires pushing ahead with a number of structural reforms. First, Turkey’s rigid labour market regulation needs to evolve, so as to encourage job creation in the formal sector. Second, further progress with education reform, from pre-school all the way to the tertiary level and vocational training, is needed to boost growth and bring about employment gains in the formal sector. Third, implementing product market reforms, notably in network industries, would unleash productivity gains in those sectors and be a boost to the rest of the economy. A set of alternative growth scenarios through 2030 illustrates how progress on these various fronts can deliver lasting improvements in living standards. This Working Paper relates to the 2012 OECD Economic Survey of Turkey (www.oecd.org/eco/surveys/turkey).
Keywords:
competition, education, Turkey, employment protection legislation, informality, growth, labour market, productivity
JEL Classification:
  • H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government
  • I25: Health, Education, and Welfare / Education and Research Institutions / Education and Economic Development
  • J2: Labor and Demographic Economics / Demand and Supply of Labor
  • J3: Labor and Demographic Economics / Wages, Compensation, and Labor Costs
  • J41: Labor and Demographic Economics / Particular Labor Markets / Labor Contracts
  • J65: Labor and Demographic Economics / Mobility, Unemployment, and Vacancies / Unemployment Insurance; Severance Pay; Plant Closings
  • O11: Economic Development, Technological Change, and Growth / Economic Development / Macroeconomic Analyses of Economic Development
  • O15: Economic Development, Technological Change, and Growth / Economic Development / Human Resources; Human Development; Income Distribution; Migration
  • O17: Economic Development, Technological Change, and Growth / Economic Development / Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
  • O18: Economic Development, Technological Change, and Growth / Economic Development / Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
  • O4: Economic Development, Technological Change, and Growth / Economic Growth and Aggregate Productivity
  • O52: Economic Development, Technological Change, and Growth / Economywide Country Studies / Europe