Dynamics of structural re-allocation, relative prices and capital flows

DYNAMICS OF STRUCTURAL RE-ALLOCATION, RELATIVE PRICES AND CAPITAL FLOWS

Emine Tahsin 41,

İstanbul University,Türkiye tahsin@istanbul.edu.tr

Abstract

Türkiye’s structural transformation over the past 30 years has been the subject of numerous studies. The primary objective of this study is to explain the dynamics of structural change over the past 30 years in terms of decomposition analysis that outlines shifts in productive and non-productive sectors. For this purpose, the GGDC/UNU-WIDER Economic Transformation database (1990–2018), TÜİK national accounts, and the OECD STAN database (2004–2024) will be used to classify sectors on the basis of ISIC 4/NACE 2. Furthermore, using OECD-STAN input-output tables (1995–2022), the study will attempt to discuss which economic activities are decisive in the process of the social reproduction of capital. In this context, the identification of the effects of structural change will be discussed through the reallocation of labor and the trends in changes in productivity and relative employment compensation. Furthermore, the extent to which the structural change dynamics emerging in Türkiye differ from those of other countries will be evaluated through the lenses of industrialization/deindustrialization and the trends toward the service sector. In this way, the effects of changes between productive and non-productive sectors on distribution relations and social reproduction processes, as well as the positioning of the Turkish economy on a global scale, will be discussed.

Keywords: Structural re-allocation, productive capital and labor, structural change and distribution JEL Codes: O1,O4,O5