Research Information System
The 32nd Conference on Economics of Turkish Economic Association, Gazimagusa, Cyprus (Kktc), 13 - 15 November 2025, pp.1, (Summary Text)
An assessment of socio-economic transformation in
Northern Cyprus
Emine Tahsin 1
İstanbul University, Turkey
tahsin@istanbul.edu.tr
Abstract
This study focus on the trajectory of socio-economic transformation in Northern Cyprus over the past
three decades, with a particular focus on sectoral decomposition, labor market dynamics, and income
distribution dynamics. The analysis highlights the structural shift from agriculture towards a service-
dominated economy, driven largely by the expansion of tourism and higher education. The basis of
economic growth and relevant sectoral transformations will be outlined. In this context the income
distribution dynamics will be included to the analysis. In case of Northern Cyprus, labor market changes
are assessed in terms of employment distribution, informality, and the role of migration and student
inflows in reshaping workforce composition. Moreover, macroeconomic policy choices are considered for
their role in shaping inequality and welfare outcomes, within the broader context of the island’s political
constraints and vulnerabilities. Drawing on key macroeconomic indicators; specific to economic growth ,
sectoral decomposition and labor market and recently published household data, the study aims to
explore the causal relationship between income distribution dynamics and growth patterns.
Keywords: Northern Cyprus economy and income distribution dynamics, labor market, economic growth
and inequalities, Northern Cyprus economy
JEL Codes: O5, O15,O11