Sources of Growth in Turkey Under Harrod-Neutral Technological Progress Identification

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If it is assumed that the nature of technological progress as Harrod-neutral, the analysis is compatible with steady state conditions. It is for this reason that the nature of technological progress is assumed to be Harrod-neutral for the econometric studies which analyze long-run relationships. This study investigates sources of growth for the Turkish economy for the period 1970-2011 based on Harrod-neutral technological progress identification. The analysis is made using the bounds testing procedure of Pesaran, Shin and Smith (2001) and the autoregressive distributed lag (ARDL) approach of Pesaran and Shin (1999). The robustness of the test results and parameter estimates are also justified by the fully modified ordinary least squares approach of Phillips and Hansen (1990). The results imply that although productivity growth may determine rise and fall of per labor output growth, it is not the main source. Further, the results also imply that productivity growth is an endogenous variable which is determined by physical and human capital accumulation, and labor growth.

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Economic growth , technological progress , the bounds testing approach , ARDL , FM , OLS

Ege Academic Review (EAR)

508

Ege Academic Review (EAR)