publication June 26, 2019

Country Economic Memorandum: Firm Productivity and Economic Growth in Turkey

World Bank Group




"All things will be produced in superior quantity and quality, and with greater ease, when each man works… without meddling with anything else."
Plato

Turkey has weathered several economic shocks since the Global Financial Crisis in 2008. At the same time, short-term policies without long-term structural reforms have diminished the sustainability of growth. 

This study examines the impact of structural reforms on productivity in Turkey and their implications for policy and institutional reform.

 

Key Messages:

Sustaining growth and improvements in living standards in Turkey will require higher productivity in the economy.

A necessary precondition for productivity growth is macroeconomic stability.

Longer-term productivity measures include structural reforms to deepen supply side capacity.


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The first two chapters in this study provide a diagnostic of macro-micro productivity linkages in Turkey. The subsequent four chapters analyze how those dynamics are affected by structural reforms.