Sources of Growth in Turkey from the Demand-Side

In this study, sources of growth of gross domestic product which stem from export growth, import growth, domestic demand growth, and the residual arising from productivity growth caused by changes in demand factors, are calculated in Turkey for the period of 1971-2017. For this purpose, firstly, an estimation was made based on ordinary least squares, and then the elasticity values were calculated. According to the findings of the study, the contribution of productivity growth to gross domestic product growth in the periods 1990-1999, 2000-2009 and 2010-2017 was negative. One can conclude from here that the change in demand, especially in the period of 1990-2017, became the reason behind the allocation of resources to relatively inefficient areas. The findings of the study point out the requirement for public policies that will increase productivity through improvements in demand conditions.