An analysis of the relationship between industrialization and growth in Turkey's economy according to the Kaldor approach

The study aims to examine the effect of industrialization on economic growth in the Turkish economy according to the Kaldor approach. For this purpose, economic growth and industrialization are initially discussed theoretically. Then, studies examining the relationship between industrialization and economic growth in Turkey between 1988-2021 are included. The relationship between industrialization and economic growth in the Turkish economy is investigated based on data for the period 1988-2021. In this study; using time series, especially manufacturing industry, which is a sub-branch of the industrial sector, manufacturing industry labor productivity growth and agriculture, which is a non-industrial sector, Extended Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests and then Lee-Strazicich (2003) double structural break unit root test was applied to determine the structural break effects of the series. The autoregressive distributed lag (ARDL) method was used to examine the cointegration relationship between the series. In addition, to determine the direction of the relationship between industrialization and economic growth, a Granger causality test based on VECM was conducted. According to the findings of the study, although there is no significant relationship between industrialization and economic growth in the short run, there is a significant relationship in the long run.