The Economic Effects of Manufacturing Industrial Sector: An Input-Output Analysis

The aim of this paper is to analyze the economic impacts of the manufacturing sector on the Turkish economy in a sub-sectoral way and to form fiscal policy recommendations by identifying the most efficient sub-sectors. For that purpose, the effects on the total value of production, labor income, capital income and total value-added have been focused on. In order to observe all direct, indirect and induced effects, Input-Output analysis has been employed using Turkish 2015 Input-Output data. As a result of the analysis, findings are observed to be different when we consider total effects instead of the direct and indirect effects.