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Büyümenin Kaynakları Yönteminin Türkiye’deki Gözlemlerinden Esinlenen Bir Eleştirisi = A Critique of the Application of Sources of Growth Method in Turkey

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Author(s): Zeyyat HATİBOĞLU

Journal: Dogus University Journal
ISSN 1302-6739

Issue: 1;
Start page: 135;
Date: 2000;
Original page

Keywords: The Sources of growth | Relative prices | Input increase | Total productivity growth.

ABSTRACT
The source of growth approach to economic growth, which is the most widely used analysis in determining economic growth of countries, is criticized by drawing upon the recent Turkish experience. In traditional analyses, the change in relative prices of goods are totally ignored. In fact, the source of growth approach is based on the impact of the rate of growth of capital and labor inputs, each multiplied by their relative share in national income plus the rate of technical growth. The calculation of growth of the Turkish economy reveals that in 1980-1998 period, in which both input and productivity increases were higher than those in the previous period (1950-1977), the growth rate has been lower than the previous period. This has suggested that there was something wrong with the source of growth method. Thereupon, it is detected that the relative decrease of labor intensive goods prices, which accured in the second period, must have exerted a decreasing influence on the growth of national income. Whereas when the source of growth approach is used this is not visible. Again, the coincidence or necessity of a decrease in the absolute level of national income along with a decrease of the growth rate of the economy suggests that the measurement of national income by foreign exchange prices should constitute a better measurement for detecting its change over time.
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