Abstract:

This study focused on the relative contributions of manufacturing and service industries to growth and employment in the Turkish economy. For this purpose, the changing structures of manufacturing and services, their bilateral relationships and the main sectors that play leading role in the Turkish economy were examined by using the Input-Output framework. The results indicate that most of the key industries are in the manufacturing sector and the service industries have limited contributions to growth. Nevertheless, some service industries seem to have important contributions to growth and development of the Turkish economy. The findings do not provide robust evidence of de-industrialization in the Turkish economy, however, manufacturing industries mostly concentrated on the production of consumer and low to middle technology goods.

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