General purpose technologies and technology diffusion: Turkish case

Production capacity is determined by scarce factors of production and the technology level of the related period. Technological advance that causes factors of production to be more productive has a substantial place in macroeconomic theory. General purpose technologies that have a determinative role in technological advance can interpret the general activity and the long-term fluctuations of an economy. The diffusion process of a general purpose technology and the factors that affect the diffusion process are of high importance in terms of encouraging the technology diffusion and sustainable economic growth. This study aims to investigate the influence of two well-known general purpose technologies -electrical technology and information technologies- on the Turkish economy. Hence, data on consumption and production of electricity and the information technologies are used to reach to a clear explanation of technological change and the adaptation process to a new technology in Turkish economy. The most important finding of this study is the key role that highly productive labor takes on technological advance and scarcity of highly productive labor in Turkish economy.