Abstract:

The differences in the major determining factors of the competitive conditions for the  new and conventional technological based sectors bring about differentiate as much in quality of production factors as  the difference  in the factor endowment. The primary effect of this situation on production structure emerges as the innovations on technological level. New technological patterns on production process entail renewing the skill level of workforce compatible with the new technologies. As the high technology based sectors developed in the fallowing process,   parallel to the created value added increases in the economies, achieving higher level of realized growth rates might possible.  In this study, within the frame of law of diminishing returns hypothesis, free movement of factors together with the technological level differences in sectors and the effects   on economic structure have evaluated.  Then, within the scope of endogenous economic growth approach and Cobb-Douglas type production function the effect of factor structure’ changes on economic growth have examined. 

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