Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth
Authors: Yaşar, Mahmut; Rejesus, Roderick M.; Mintemur, Ilhami
Source: Applied Economics, Volume 36, Number 17, September 20, 2004 , pp. 1937-1945(9)
Abstract:This paper examines the Schumpeterian creative destruction process by decomposing and analysing aggregate industry-level productivity growth in three Turkish manufacturing industries. The results are somewhat supportive of the Schumpeterian hypothesis given that the productivity effects within plants contributed the most to the aggregate level productivity growth. However, the results generally contradict the insight that plants entering the market have higher productivity than plants that exit the market. This supports Caballero and Hammour's (NBER Working Paper No. 7720, 2000) arguments that institutional and market constraints may interfere with the proper functioning of Schumpeter's creative destruction process.
Document Type: Research Article
Publication date: September 1, 2004