Abstract
In this study, the leading activities of Turkish Economy whose changes in their structure of production, value-added and employment are interrelated with the other activities of the economy, are found by using the input-output model which is presented and called as an 'Application of the General Equilibrium Theory' by Leontief. For this purpose; firstly theoretical foundations of the input-output model are examined. After that, 59 activities of the 2002 Input-Output Table of the Turkish Economy are aggregated at 52 sectors and classified into three categories as Ricardo Sectors, High-Technology Sectors and Heckscher-Ohlin Sectors like Dasgupta and Chakraborty did for the Indian Economy in 2005. Then, the leading, key or strong activities of the economy that are more interrelated with other activities are calculated and found by the Static Leontief Model which is used by the Traditional Methods as the techniques to calculate the linkage effects like Chenery-Watanabe and Rasmussen methods to determine the sectors having the highest priority at investment policies according to the Hirschmanian Unbalanced Growth Model. As a result of the interpretation of Leontief Model, using the traditional methods of Chenery-Watanabe and Rasmussen while calculating the linkage effects rather than the hypothesis extraction methods like Strassert's Original Extraction Method, Cella's Extraction Method, Sonis' Pure Linkage Method and Dietzenbacher and Van der Linden's Method or a SAM (Social Accounting Method) model which does not omit the income generating process (distributing income among primary factors and households as a result of production) of a sector, in Turkey, the Heckscher-Ohlin Sectors mostly seen in the manufacturing industry which Kaldor refers as the engine of growth, are stronger than the other sectors.
Highlights
Introduction and theoretical foundationsThe leading model of the General Equilibrium Theory that is simplified by matrix algebra, The Static Leontief Input-Output Model, has been changing by creating new application fields for the last 60 years
The leading, key or strong activities of the economy that are more interrelated with other activities are calculated and found by the Static Leontief Model which is used by the Traditional Methods as the techniques to calculate the linkage effects like Chenery-Watanabe and Rasmussen methods to determine the sectors having the highest priority at investment policies according to the Hirschmanian Unbalanced Growth Model
We aim to study the structure of the Turkish Economy using the classification of sectors due to the intensity of the factors in production which Dasgupta and Chakraborty (2005) applied to the Indian Economy by using the 1993 Input-Output Table of India
Summary
The leading model of the General Equilibrium Theory that is simplified by matrix algebra, The Static Leontief Input-Output Model, has been changing by creating new application fields for the last 60 years. The model which is classically a stage and the main technique of the economic planning and is called by Leontief as an application of the General Equilibrium Theory has been applied to the 2002 domestic input-output table to obtain the interindustrial relations of the Turkish economy. “The use of interindustry analysis as a tool of development policy arises from the need to co-ordinate investment plans in interrelated sectors of the economy”, says, Hollis B. According to Chenery (1960) the use of interindustry analysis for development policy is still in an experimental stage. Nicholas Kaldor (1986), the Neo-Keynesian economist who determined the effect of production of the manufacturing sector on the overall growth of an economy, emphasized that, a stable and permanent economical growth will need the formation of new and complementary products and sectors as a result of the interaction of all the products and sectors of the economy
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