Structural changes in the Turkish economy : 1962-1967

The authors used the 1963 and 1967 interindustry transaction tables of Turkey to determine changes that took place in the Turkish economy. The basic objective of the Plan was to increase the relative importance of the industrial sector, and to reduce the heavy dependence of agriculture on weather conditions. In practice, however, emphasis was placed on the industrial objective. The analysis showed that the production structure of Turkey did not change significantly during the five-year period. The production structure remained oriented to the first transformation of primary goods. The economy has remained dominated by the primary and service blocks, and the use of energy in the economy has remained very limited. No significant improvements have been recorded in the integration of sectors within many of the blocks. Finally, the dependence on imports has increased. The results of the I-O analysis suggest that key sectors were neglected and the relations of various sector were not fully understood. For example, the chemicals sector has strong impacts on many other sectors, yet large investment projects for this sector were delayed. The study illustrates how block triangulation can contribute to the development planning by highlighting the key sectors connecting different blocks and the key relations linking sectors within a given block.