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00/12 Productivity in Turkish manufacturing industry: A comparative analysis on the basis of selected provinces

A.Özlem Önder and Aykut Lenger

One of the main concerns of the studies dealing with competitiveness and growth accounting is productivity in manufacturing industry. However, the overall consideration of productivity on the national level leads us to ignore the fact that productivity rates may diversify among regions within a country. A comparison of productivity on regional level might provide policy-makers with the necessary information to attain efficiency in the allocation of resources among regions. This paper compares the productivity levels in manufacturing industry on the basis of 19 selected provinces in Turkey for 1994-97. The analysis is based on labor productivity, capital productivity and total factor productivity (TFP). The capital stocks of manufacturing industry at the province level were estimated to use as input in computation of TFPs. The estimations of productivity in the public and private sector were also provided for each province. Our results suggest that, contrary to the common view, productivity levels in the public sector exceed the ones in the private sector in most indicators.


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