Structural Transformation and Labor Productivity in the Manufacturing Industry in Turkey: 1981-2000 Period

This study examines the effect of structural transformation on labor productivity growth in the manufacturing industry in Turkey for the period of 1981-2000. Structural transformation is defined as movement of the factor inputs of the sector from sectors which have relatively low productivity to the sectors which have relatively high labor productivity. The conventional shiftshare analysis has been used in the purpose of showing the effect of structural transformation on rise of labor productivity of manufacturing sector. The empirical results do not support the structural bonus hypothesis. The empirical findings show that, structural transformation is not important in explaining rise of labor productivity for the period of 1981-2000. Moreover, the structural transformation seems to be burden rise of labor productivity rather than a bonus in during 1981-2000.