Abstract:

Goal: The adoption of strategies to increase labour efficiency in order to develop competitiveness in the manufacturing industry, which has an important role in the country’s economies, is the basis of sustainable economic growth. Since economic growth should be viewed by the production approach, this study has sought to investigate the relationship between labour efficiency and economic growth of the manufacturing industry, which is considered the locomotive of growth. Method: In this study, using VAR Analysis, the relationship between the productive industrial labour efficiency and economic growth in Turkey was studied in the period 2005-2017. Results: The statistical analysis has found a two-way causal relationship between productive industry labour efficiency and economic growth both in the long term and in the short term. The increase in labour efficiency in the manufacturing industry has led to growth in the country’s economy and the economic growth has led to the increase in labour efficiency in the manufacturing industry. Originality: To analyze the relationship between labour efficiency and economic growth in the manufacturing industry, a series of three-month data of the production index per hour studied in the manufacturing industry, the volume index chained in the domestic net and the production industry capacity use rate were used. This study, using statistical methods, is important in terms of contributing to literature.