Is There Evidence of Creative Destruction in the Turkish Manufacturing Sector? Lessons From a Cross-Industry Analysis of Aggregate Productivity Growth

Applied Economics, 2004, 36, 1937–1945

Posted: 8 Jan 2020

See all articles by Mahmut Yasar

Mahmut Yasar

University of Texas at Arlington - Department of Economics; Emory University - Department of Economics

Roderick M. Rejesus

North Carolina State University

Ilhami Mintemur

State Institute of Statistics

Date Written: 2004

Abstract

This paper examines the Schumpeterian creative destruction process by decomposing and analysing aggregate industry-level productivity growth in three Turkish manufacturing industries. The results are somewhat supportive of the Schumpeterian hypothesis given that the productivity effects within plants contributed the most to the aggregate level productivity growth. However, the results generally contradict the insight that plants entering the market have higher productivity than plants that exit the market. This supports Caballero and Hammour’s (NBER Working Paper No. 7720, 2000) arguments that institutional and market constraints may interfere with the proper functioning of Schumpeter’s creative destruction process.

Keywords: Schumpeterian creative destruction process, aggregate industry-level productivity growth, Plant-level productivity analysis, the sources of productivity growth

JEL Classification: D24, L25, O12

Suggested Citation

Yasar, Mahmut and Rejesus, Roderick M. and Mintemur, Ilhami, Is There Evidence of Creative Destruction in the Turkish Manufacturing Sector? Lessons From a Cross-Industry Analysis of Aggregate Productivity Growth (2004). Applied Economics, 2004, 36, 1937–1945, Available at SSRN: https://ssrn.com/abstract=3505410

Mahmut Yasar (Contact Author)

University of Texas at Arlington - Department of Economics ( email )

701 S. West Street
Arlington, TX 76019
United States

Emory University - Department of Economics ( email )

Roderick M. Rejesus

North Carolina State University ( email )

Hillsborough Street
Raleigh, NC 27695
United States

Ilhami Mintemur

State Institute of Statistics ( email )

Akara
Turkey
(312) 410-0368 (Phone)
(312) 417-2378 (Fax)

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