Determinants Of Economic Complexity and Growth In Developing and Developed Nations Evaluating Turkiye’s Current Standing and Future Outlook


Çakır N., Göksu G., Küçükkocaoğlu G.

25. Finans Sempozyumu, Burdur, Turkey, 19 - 22 October 2022, pp.237-256

  • Publication Type: Conference Paper / Full Text
  • City: Burdur
  • Country: Turkey
  • Page Numbers: pp.237-256
  • Kocaeli University Affiliated: Yes

Abstract

Economic complexity is a concept measuring a country’s productive knowledge and capabilities contributing to the production of a good through a comprehensive analysis of its export structure. Turkiye, as a G-20 nation over the world economies, ranks 29th in total exports, 26th in total imports and 43rd in economic complexity. Low and volatile growth rates in the economy, low productivity, chronic unemployment, weak integration with the rest of the world, dependence on government spending and investment, lack of institutional reforms and regulations, are often cited as the main structural obstacles of Turkiye and makes it a less complex economy. It is of crucial importance to understand the main drivers of economic complexity and economic growth, so that relevant policy actions and drivers of economic complexity and growth can be taken into account to achieve a more advanced and diversified economic system that would increase the rate of growth and prosperity. Turkiye should start thinking about how to make its economy more complex and start making highly sophisticated products. The objective of this study is to analyze the determinants of economic complexity amongs 33 developed and 107 developing nations during the period between 2000 – 2020 and recommend some policy actions for Turkiye to make its economy more complex and start making highly sophisticated products.