The structural changes of economic growth in Turkey within the framework of endogenous growth theories

Economic Growth is a historical, current and alive issue for all economic schools. Economic growth theories and models have improvements parallel to economy literature and always try to suggest best politics for economic development to the policy makers. Endogenous growth theories critics classical economic theories in two main aspects. These are convergence and government policies. In this study, endogenous growth theories validity will be checked in Turkey for the period from 2001:Q1 to 2013:Q3. Lucas (1988) model will be considered in order to observe the human capital effects on the growth, Barro (1990) model will be considered in order to observe the government expenditures on economic growth and lastly Rebelo (1991) model will be considered in order to observe the fixed capital investments effects on economic growth. According to the empirical tests applied in the selected period for Turkey, only Lucas (1988) growth model is valid, Rebelo (1991) and Barro (1990) models are invalid due to the results. In that parallel, economic crises and inefficient usage of sources are supposed to be the main reasons that results invalidity of fixed capital investments on economic growth. Human capital seems to be the main engine of growth for Turkey in the selected period. To increase the human capital it is necessary to spend more sources on education and to invest in the fixed capital that has high technology. Key Words: Endogenous Growth Theories, Rebelo Growth Model, Barro Growth Model, Lucas Growth Model, Time Series