Institutional Factors and Growth in Turkey: An Assessment on the Growth Process in 2010-2020 Period
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https://doi.org/10.5281/zenodo.7497212Keywords:
Institutional Structure, Growth, Turkish EconomyAbstract
The Turkish economy has been experiencing a process in which the growth rates converged to zero in there cent period. Although this situation is evaluated within the framework of a characteristic specific to the current period, it is important to reveal the main problem in terms of the continuity of the growth process in the up coming period. One of the most important components of the growth process is investments. The trends of foreign direct investments and domestic investments in Turkey in the post-2010 period provide information about the convergence of the growth process to zero. However, in order to examine the main reasons for this process, it is also necessary to examine the development of institutional factors in Turkey after 2010. In this context, the trend of institutional factors related to property rights protection, legal enforcement of contracts, regulations forthe labor market, controls over capital and the mobility of individuals, establishment of a business and economic freedom is emphasized. According to the trend of institutional factors, values of institutional variable ssuch as property rights protection, legal enforcement of contracts, controls over capital and the mobility of individuals and economic freedom have decreased. Accordingly, in order for Turkey to enter the 2020’s with a stronger growth target, it is necessary to identify the problems related to institutional factors, to eliminate these problems and to strengthenth existing institutional structure after the problems are resolved. When the institutional structure is strengthened, the incentive mechanism will be activated and the way for more efficient use of resources will be paved.
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