Abstract:

Economic growth is based on the physical structure of capital as well as the efficiency of income and the technological content of capital. There are five key factors that contribute to growth. These are the quantity of labour, the quality of labour (qualitative labour), the quantity of physical capital, the physical capital with technological content and, finally, the overall efficiency of the factor determined by the more qualified labour and the capital with technological content. It is believed that the overall factor efficiency is also the source of information-based economic growth and is very important, especially in global markets, because it will increase the competitiveness of countries. Therefore, the study, using Granger causality analysis, observed the relationship between the total factor efficiency and economic growth of Turkey between the years 1950 and 2016.