Unleashing the full potential of the Turkish business sector
Productivity in Turkey has been growing stronger than in most peer countries since
2010 but has slowed down. Despite a remarkably entrepreneurial population, business
dynamism has also been less vigorous in recent years. This working paper discusses
the factors behind this slowdown and analyses a wide range of structural policies
that would help to revive productivity growth and unleash the full potential of the
Turkish business sector. The elevated number of informal, semi-formal and fully formal
forms constitutes a key impediment to higher growth and more high-quality jobs. Structural
reforms that allow more flexibility in labour markets, more competition in product
markets and major progress with the quality of governance would foster productivity
growth, job creation but also boost the digital transformation. Streamlining and simplifying
the complex system of regulations and government support schemes would prevent firms
from clustering around eligibility thresholds and thus remove obstacles to the upscaling
of firms.
Published on April 13, 2021
In series:OECD Economics Department Working Papersview more titles