The effect of capital and labor on productivity on Turkish textile companies

The Turkish textile and clothing industry has contributed to the economic growth of Turkey for years now which has brought a considerable amount of output in business areas and world trade markets. The Turkish Textile companies played an important role in exportation, job availability and technological development. Due to the constant remark in the progressive industrial performance of the Turkish textiles and apparel industries which have improved daily life of people in the society. Hence the present study aims to analyze the effect of the relationship of labor and capital on the productivity for 8 different Turkish textile firms which covers a duration of 9 years from 2009 to 2017. Again, the 8 textile companies were chosen from Turkish Istanbul Chambers of Commerce 500 Largest companies, thus, gross added value was considered as the output are capital and labor ( number of employees ) as inputs. Capital and labor are the independent variables and gross value addition the dependent variable. The main objective of study applied correlation analysis to ascertain the strength of the relationship between the dependent and independent variables that is the relation between capital, labor and productivity. The regression analysis model analyzed the effect of change of capital and labor on the productivity for the Turkish textile and apparel industries. The findings from the analysis concluded that there is a relationship between capital and labor on productivity and capital and labor have an effect on the productivity for the Turkish textile industries from the peroid of 2009 to 2017 for the study. Keywords: Productivity, Textile industries in Turkey, Ready to wear, Output, Input.