Browsing by Author "Orhangazi, Özgür"

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The Impact of Borrowing on Household Saving Behavior the Case of Turkey 2003 – 2012
(Kadir Has Üniversitesi, 2018) Şenol, Serdar; Orhangazi, Özgür
The aim of this Ph.D. thesis is to contribute to the vast literature on the determinants of household saving and reassess the precautionary saving preferences of Turkish households by introducing liquidity and debt related factors aside from the general saving contributors. The precautionary saving motive against future income uncertainties defined as one of the leading indicators of saving preferences is effected through liquidity effects especially in less financialized economies with uneven income distributions. The sharp decline in Turkish households‘ saving ratio in the global financialization period is a good example of the changing saving dynamics with liquidity and debt concepts. in my thesis i use the Turkish Household Budget Surveys for the period of 2003 to 2012. in addition to the socioeconomic and demographic information in these surveys i also utilize generated liquidity and debt indicators. Descriptive analysis confirms the predictions of the saving literature showing young and impatient households to be less inclined to save. Education level improves while employment focuses on the service sector. Uneven income distribution is one of the major factors to limit saving and also precautionary saving opportunities for a significant portion of observations and elevates the importance of liquidity conditions. Empirical analysis confirms the presence of precautionary saving in Turkish households while its significance is lower after the 2008 crisis once liquidity effects are introduced. Moreover wealthy and entrepreneur households are observed to be natural savers. Presumably liquidity constrained households do not demonstrate a difference in precautionary saving preferences but confirming the predictions of the liquidity constraint households hypothesis they dissave with easier liquidity conditions. The presence of debt is an additional saving motive. it is suggested that an improvement in income distribution and a decline in the liquidity constrained households‘ share would rebalance the low saving level of Turkish households.
2001 Sonrası Türkiye'de Bankacılık Sektörü
(Kadir Has Üniversitesi, 2016) Genç, Tolga; Orhangazi, Özgür
Bu çalışmada öncelikli olarak 2001 krizi sonrasında ekonomi ve bankacılık sektörünün genel durumu tespit edilmeye çalışılmıştır. 2001 yılında gerçekleşen ekonomik daralma, kurlardaki hızlı iniş çıkışlar, enflasyon, işsizlik gibi gelişmelerin dalgalı kur sistemine geçilmesi, enflasyon hedeflemesinin uygulanmaya başlanması, Merkez Bankasının bağımsızlığını sağlanmasına yönelik yasanın çıkartılması ile sonuçlanmıştır. Banka sayısı, hizmet çeşitliliği ve teknolojik altyapı olarak ilerlemiş olan bankaların öz kaynak yetersizliği, iç kontrol ve risk algılama sistemlerinin zayıflığı, düşük aktif kalitesi gibi problemleri yaşanan makroekonomik istikrarsızlık ile birlikte bankacılık sektörünün ciddi bir krize sürüklenmesine sebep olmuştur. Bu yapısal sorunların giderilmesi amacıyla "Bankacılık Sektörü Yeniden Yapılandırma Programı" başlatılmış ve sektörün sayı olarak ayıklanması ve güçlendirilmesi hedeflenmiştir. Bankacılık sektöründe 2000'lerin başından itibaren bugüne kadar banka sayısı, şube sayısı, istihdam, aktif büyüklüğü, kredi-mevduat oranları ve yoğunlaşma anlamında yaşanan gelişmeler sayı olarak analiz edildiğinde sektörde yoğunlaşmanın olduğu, siyasi gelişmelere paralel katılım bankacılığının hızla geliştiği, kredilerde mevduata göre hızlı bir büyüme söz konusu olduğu görülmektedir. Banka karlılıkları konusunda yerli ve yabancı literatürde yapılan çalışmalar tek ülke verileri ve çok ülke verileri olmak üzere iki başlık altında toplanmaktadır. Banka karlılığı üzerine yapılan çalışmalarda bağımlı değişken olarak Aktif Karlılığı (Return on Asset-ROA), Özkaynak Karlılığı (Return on Equity-ROE) kullanılmıştır. Bağımsız değişkenler olarak, bankalara özel ve sektörel verilerle makroekonomik değişkenler kullanılmıştır. Çalışmanın amacı, Karlılık Analizi dahilinde örnek olarak seçilen 18 kamu, özel ve yabancı sermayeli mevduat bankasının karlılığa dayalı performansının incelenmesi ve bankaların karını etkileyen değişkenler konusunda değerlendirmesini yapmaktır. Çalışmada bankaların karlılık göstergeleri olan Aktif Karlılığı (ROA) ve Öz Kaynak Karlılığı (ROE), banka özelinde, sektör bazında ve makroekonomik değişkenlerle açıklanmaya çalışılmaktadır. Çalışmada seçilen 18 adet bankanın toplam, 2008 Krizi öncesi dönem ve sonrası olarak 2 grup, yoğunlaşma açısından ilk beş sırada yer alan 5 banka ve kalan 13 banka olarak 2 grup, yerli ve yabancı sermaye sahibi bankalar olarak 2 grup olarak 7 grupta ROA ve ROE değerlerinin belirlenen değişkenler ile ilişkilerine bakılmıştır. Buna ilave olarak Sıradan En Küçük Kareler Yöntemi ile belirlenmiş olan değişkenlerin toplu halde ROA ve ROE ile ilişkileri de değerlendirilmiştir. Bankaların aktif büyüklüklerinin, sermaye yeterliliğinin, yoğunlaşmanın, mevduat ve kredi hacimlerinin, net faiz gelirleri ve net faiz dışı gelirlerinin karlılığa pozitif bir etkisi olduğu görülmektedir. Mevduatların kredileri karşılayabilme durumları, takipteki krediler, enflasyon, TL / USD Döviz Kuru ise karlılığı negatif olarak etkilemektedir.
Citation - WoS: 5
Citation - Scopus: 5
Heterogeneous Effects of Minimum Wage on Labor Market Outcomes: a Case Study From Turkey
(Walter de Gruyter, 2020) Işık, Enes; Orhangazi, Özgür; Tekgüç, Hasan
We assess the effects of a sharp minimum wage increase on wages, informality, and employment in Turkey, a large developing economy with one of the highest minimum wage-to-average wage ratios among OECD countries and widespread discrepancies between labor market outcomes of women and of men. We look at the quasi-experimental 2016 minimum wage increase and pay attention to identifying information coming from demographic groups. We find that the increase in the minimum wage had an economically substantial and statistically significant positive impact on wages. Despite the positive wage effects of the increase, we find no negative employment effects. However, we show that the minimum wage increase may have caused an increase in the share of informal employment among workers with less than tertiary education, especially for such workers working for small firms
Türkiye Ekonomisinin İthalat Bağımlılığı (2000-2021)
(2023) Cihan, Ulaş Berkay; Orhangazi, Özgür
Türkiye ekonomisi'nin ithalat bağımlılık karakterini tanımlamaya çalışacağım. Bu çalışmada Türkiye'nin 1980 sonrası dış ticaret verilerini mal grupları ve genel makro verilerle birlikte inceliyorum. Bu dönemde dış ticaret yapısını etkileyen reel kur politikasını ve gümrük teşviklerini inceliyorum. İthalat bağımlılığını arttıran teşvik modeli olarak Dahilde İşlem Rejimi'nin etki düzeyine dair verilerle bu rejimin ithalat bağımlılığını artırdığını buluyorum. Dahilde İşlem Rejimi'nin toplam gerçekleştirilen ihracatı 2021 yılı itibari ile %40 oranında etkilediğini buluyorum. 2000'li yıllardan itibaren döviz kurlarındaki oynaklığın ve yeni ticaret biçimlerinin üretimin ithalata bağımlı olma sorununu şiddetlendirdiği bulmaktayım. 2000'li yıllardan beri üretimin ithalata bağımlılığını 2002 ve 2012 Girdi-Çıktı Tabloları ile inceliyorum. Ayrıca 2000- 2014 dönemi için Dünya Girdi-Çıktı Tablosundan elde ettiğim verilerle Türkiye'nin ithalata bağımlılık eğilimini gösteriyorum. Kimyasal ve kimyasal ürünlerin imalat, ana metaller, motorlu araçlar ve makine ve teçhizat sektörlerinin her iki tablo incelediğinde en yüksek ithal girdi oranına sahip olduğunu buluyorum.
Citation - WoS: 1
Citation - Scopus: 2
Financialization and the Nonfinancial Corporate Sector
(Edward Elgar Publishing Ltd, 2015) Orhangazi, Özgür
[Abstract Not Available]
Citation - WoS: 3
Citation - Scopus: 3
Contours of Alternative Policy Making in Venezuela
(Sage Publications Inc, 2014) Orhangazi, Özgür
The economic policies of the Venezuelan government in the last decade represent a significant departure from neoliberal orthodoxy. This departure consists of a focus on greater national autonomy, a return to some of the macroeconomic policies of earlier eras, and increased state involvement in the economy through interventions and social programs. While these policies have resulted in improved social indicators, they also have provided space for a set of "transformative" initiatives, including experiments with worker co-management, cooperatives, and participatory planning, all of which seek alternatives to the capitalist organization of the economy. Although the Venezuelan experience could be considered sui generis, especially with the economy's dependence on oil, a critical evaluation of the policies implemented in Venezuela would contribute to discussions on the alternatives to both neoliberal policies and capitalism in general. This paper provides an analysis of the break with neoliberal economic policies and of the transformative initiatives, as well as an evaluation of their achievements together with a discussion on their likely future path.
Citation - WoS: 31
Citation - Scopus: 36
Competition and Monopoly in the U.s. Economy: What Do the Industrial Concentration Data Show?
(Sage Publications, 2021) Davis, Leila; Orhangazi, Özgür
A recent series of academic studies, think-tank reports, and news articles shows widespread attention to rising industrial concentration and market power in the U.S. economy. In this paper, we focus on concentration in the U.S. nonfinancial corporate sector to make three contributions to the literature. First, we use examples from the debate on industrial concentration to show that there are often-divergent predictions in the theoretical literature surrounding the expected consequences of concentration and monopolization for nonfinancial firms. Second, we use industry-level concentration data to describe recent trends in average concentration. We show that, while concentration increases across the majority of industries after the late 1990s, the retail and information-services sectors are particularly key for understanding recent trends in average industrial concentration. Third, we link our industry-level analysis with firm-level data to describe the relationship between industrial concentration and nonfinancial corporations' profitability, markups, and investment. Consistent with the ambiguities in the theoretical literature, we find that these relationships are not uniform: while some highly concentrated industries confirm standard expectations with high markups, high profitability, and low investment rates, other highly concentrated industries earn lower-than-average markups and profits, suggesting that - in some industries - increased concentration and intensified competition may go hand in hand.
Türkiye'nin Yeşil Dönüşümü ve İş Fırsatları
(2023) Gözkün, Kübra Atik; Orhangazi, Özgür
Enerji sektörü küresel olarak sera gazı emisyonunu arttırırken, Türkiye'deki yıllık sera gazı emisyonlarının %40'ından elektrik üretimi sorumludur. Elektrik enerjisi üretimi amacıyla yenilenebilir enerji kaynaklarına yapılacak geçişin emisyon salınımında düşüşe sebep olması beklenirken, ekonomik aktivite ve istihdam fırsatlarında da artış yaratması beklenmektedir. Literatürdeki araştırmalar, yeşil enerji yatırımlarının ekonomik büyüme ve istihdam üzerindeki etkisi üzerine yoğunlaşmış olup, gelişmekte olan ülkelerdeki net etki belirsizdir. Ayrıca, alternatif politika senaryolarını dikkate alarak Türkiye'nin enerji geçişini inceleyen az sayıda çalışma bulunmaktadır. Bu tez, girdi-çıktı yöntemi ve istihdam faktörü yaklaşımını kullanarak Türkiye'de yeşil enerji dönüşümünün istihdam üzerindeki etkisini farklı senaryolar altında incelemektedir. Her iki analiz de, kömür enerjisinin yenilenebilir enerjiye göre daha yüksek istihdam potansiyeli içerdiğini, yenilenebilir enerji yatırımlarının ise fosil yakıtlara göre daha fazla operasyon ve bakım işi sağladığını göstermektedir. 1 milyon dolarlık yatırım, önümüzdeki 25 sene içerisinde güneş enerjisinde 16.2 iş potansiyeli barındırırken, rüzgar enerjisi 11.6 iş yaratmaktadır. Kömür enerjisi, daha yüksek sermaye maliyetleri nedeniyle yenilenebilir enerjiden daha yüksek bir istihdam yaratma potansiyeline sahip olsa da, öngörülen elektrik talebinin analize dahil edilmesi, 2020 istihdamının toplam %1,3 ila %3,9'una eşdeğer net pozitif istihdam fırsatı yaratmaktadır. Bu sonuçlar enerji endüstrisinin transformasyonunun enerji verimliliği yatırımları ile desteklenmesi gerektiğini ortaya koymaktadır.
Citation - WoS: 90
Citation - Scopus: 87
The Role of Intangible Assets in Explaining the Investment-Profit Puzzle
(Oxford Univ Press, 2019) Orhangazi, Özgür
Starting around the early 2000s, and especially after the 2008 crisis, the rate of capital accumulation for US nonfinancial corporations has slowed down despite relatively high profitability; indicating a weakening of the link between profitability and investment. While the literature mostly focuses on financialisation and globalisation as the reasons behind this slowdown, I suggest adding another layer to these explanations and argue that, in conjunction with financialisation and globalisation, we need to pay attention to the increased use of intangible assets by nonfinancial corporations in the last two decades. Intangibles such as brand names, trademarks, patents and copyrights play a role in the widening of the profit-investment gap as the use of these assets enables firms to increase market power and profitability without necessarily generating a corresponding increase in fixed capital investment. After discussing the ways nonfinancial corporations use intangible assets, I look at large corporations in the USA and find the following: (i) The ratio of intangible assets to the capital stock increased in general. This increase is highest for firms in high-technology, healthcare, nondurables and telecommunications. (ii) Industries with higher intangible asset ratios have lower investment to profit ratios. (iii) Industries with higher intangible asset ratios have higher markups and profitability. (iv) The composition of the nonfinancial corporate sector has changed and the weight of high-technology and healthcare firms has increased; but this increase did not correspond to an equal increase in their investment share. The decline in the investment share of durables, nondurables and machinery is matched by an increase in the investment share of location-specific industries with low intangible asset use, most notably firms in energy extraction. In general, these firms have steadier markups and higher investment to profit ratios. (v)Yet, intangible-intensive industries' profitability has increased faster than their share of investment or total assets. All in all, these findings are in line with the suggestion that the increased use of intangible assets enables firms to have high profitability without a corresponding increase in investment.
Citation - WoS: 64
Citation - Scopus: 73
The Re-making of the Turkish Crisis
(WILEY, 2021) Orhangazi, Özgür; Yeldan, A. Erinç
By the end of 2018 Turkey had entered a new economic crisis and a lengthy recession period. In contrast to the previous financial crises of 1994, 2001 and 2009, when the economy shrank abruptly with a spectacular collapse of asset values and a severe contraction of output, the 2018 economic crisis was characterized by a prolonged recession with persistent low (negative) rates of growth, dwindling investment performance, debt repayment problems, secularly rising unemployment, spiralling currency depreciation and high inflation. The mainstream approach attributes this dismal performance to a lack of 'structural reforms' and/or exogenous policy factors. However, this analysis shows that the underlying sources of the crisis are to be found not in the conjunctural cycles of reform fatigue, but rather in the post-2001, neoliberal, speculation-led growth model that relied excessively on hot-money inflows and external debt accumulation. This article argues that following the post-2001 orthodox reforms, a foreign capital inflow-dependent, debt-led and construction-centred economic growth model dominated the economy and caused a long build-up of imbalances and increased fragilities that led to the 2018 crisis. The Covid-19 pandemic of 2020-21 further exposed these fragilities, pushing the economy back into a recession with rapid capital outflows causing another round of sharp currency depreciation.
Citation - WoS: 1
Contradictions of Capital Accumulation in the Age of Financialization
(Edward Elgar Publishing Ltd, 2016) Orhangazi, Özgür
[Abstract Not Available]
States Banks and Crisis: Emerging Finance Capitalism in Mexico and Turkey
(M.E Sharpe Inc., 2013) Orhangazi, Özgür
[Abstract Not Available]
Kalkınma, Kapitalizmin Mantığı ve Eşit Olmayan Gelişme
(İ.Ü. İktisat Fakültesi Mezunları Cemiyeti, 2011) Orhangazi, Özgür
Kapitalizm, ortaya çıkışından bu yana dünya üzerinde eşit olmayan bir gelişme üretmiştir. İlk başlarda, kapitalizmin ortaya çıktığı bölgeler ve bunların uzantılarıyla dünyanın geri kalanı arasında kurulan ilişkilerin yarattığı eşit olmayan gelişme dinamikleri, sistemin mantığı tarafından sürekli yeniden üretilmektedir. Dünyanın belirli yerlerinde ortaya çıkan iktisadi gelişme, çoğu zaman başka bölgelerde ‘azgelişme’ yaratmaktadır. Gerek 1980 öncesinin devletçi kalkınma politikaları gerekse daha sonra devreye sokulan neoliberal politikalar, ‘azgelişmiş’ ülkelerin ‘gelişmiş’ ülkeler seviyesine ulaşmasını sağlayamamıştır. Gerçek anlamda bir kalkınmadan söz edebilmek için bu piyasacı/devletçi kalkınma ikileminden koparak yeni bir paradigmanın arayışı içerisine girilmesi ve hem iktisadi hem de insani kalkınmanın sermayenin ihtiyaç ve kararlarının insafına bırakılmaması gerekmektedir.
Citation - WoS: 8
Citation - Scopus: 10
Growth and Distribution After the 2007-2008 Us Financial Crisis: Who Shouldered the Burden of the Crisis?
(Edward Elgar Publishing Ltd, 2016) Dufour, Mathieu; Orhangazi, Özgür
The post-1980 era witnessed an increase in the frequency and severity of financial crises around the globe the majority of which took place in low-and middle-income countries. Studies of the impacts of these crises have identified three broad sets of consequences. First the burden of crises falls disproportionately on labor in general and low-income segments of society in particular. In the years following financial crises wages and labor share of income fall the rate of unemployment increases the power of labor and labor unions is eroded and income inequality and rates of poverty increase. Capital as a whole on the other hand usually recovers quickly and most of the time gains more ground. Second the consequences of crises are visible not only through asset and income distribution but also in government policies. Government policies in most cases favor capital especially financial capital at the expense of large masses. In addition many crises have presented opportunities for further deregulation and liberalization not only in financial markets but in the rest of the economy as well. Third in the aftermath of financial crises in low-and middle-income economies capital inflows may increase as international capital seeks to take advantage of the crisis and acquire domestic financial and non-financial assets. The 2007-2008 financial crisis in the US provides an opportunity to extend this analysis to a leading high-income country and see if the patterns visible in other crises are also visible in this case. Using the questions and issues typically raised in examinations of low-and middle-income countries we study the consequences of the 2007-2008 US financial crisis and complement the budding literature on the 'Great Recession.' In particular we examine the impacts of the crisis on labor and capital with a focus on distributional effects of the crisis such as changes in income shares of labor and capital and the evolution of inequality and poverty. We also analyse the role of government policies through a study of government taxation and spending policies and examine capital flow patterns.
“Capitalism without Capital” or “Technofeudalism”? Preliminary Thoughts toward a Theory of Knowledge Monopolization
(SAGE Publications Inc., 2025) Orhangazi, Özgür
This article engages with the arguments that the rise of intangible assets, digital platforms, and knowledge monopolies represents either a fundamental transformation of capitalism or the emergence of “technofeudalism.” Drawing from Marxian economic theory, I propose a conceptual framework based on three appearances of knowledge in the economy: commodity, capital, and barriers to entry. Knowledge commodities challenge traditional Marxian value theory because of their infinite reproducibility and near-zero reproduction costs, enabling firms to extract rents rather than directly create new value. Intangible assets increasingly function as capital, intensifying labor exploitation and enabling surveillance and control. Finally, knowledge monopolization reinforces capitalist accumulation and monopolization tendencies by creating barriers to entry. The analysis underscores the persistence of core capitalist logic while highlighting new contradictions posed by digitalization, intangible assets, and intellectual property rights.JEL Classification: B51, O33, O34, L86. © 2025 Elsevier B.V., All rights reserved.
Labor Market Outcomes of Minimum Wage Increases: a Case Study
(Kadir Has Üniversitesi, 2019) Işık, Enes; Orhangazi, Özgür
There is an ongoing controversy surrounding the minimum wage policy. On the one hand, proponents argue that minimum wage can support employment in the presence of a labor market monopsony; opponents, on the other hand, argue that minimum wage has adverse impact on employment outcomes. In this study, using the 33% minimum wage increase in 2016 in Turkey as a quasi-experiment and utilizing the regional variation in the fraction of workers a↵ected by minimum wage increases, I examine the impact of the minimum wage policy on wages,employment, and informality. I illustrate that young workers and less than high school educated workers are disproportionally represented among minimum wage workers. Armed with this finding, I show wage gains for less educated workers and no adverse impact on employment outcomes. I find, however, relatively large positive informality e↵ects on young workers.According to the findings presented in this study, an additional 10 percent of potential minimum wage workers a↵ected by the 2016 minimum wage increase rises young workers’ informality by 12 to 17 percent.
Türkiye'de Kamu-özel İşbirliği
(2023) Peru, Murat Talha; Orhangazi, Özgür
Özellikle 1980'li yıllardan itibaren dünyada ve Türkiye'de Kamu-Özel İşbirliği projeleri popular hale gelmiştir. Bütçe kısıtı altında bulunan hükümetler, bazı önemli projeleri, (otoyol, köprü, havaalanları, liman, enerji vb.) özel kesime inşaa ettirip, belirli bir süre işletilmesi için imtiyaz vermiştir. Böylece hükümetler bu projeler için herhangi bir harcama yapmayacak ve kamu hizmetlerinin özel kesim tarafından yürütülmesi sağlanacaktır. Bunun yanında bazı projeleri daha cazip hale getirmek amacıyla bazı garantiler ödemeler (yolcu, araç vb) vermektedir. Ancak, bu garantiler nedeniyle, özel kesime ciddi ödemeler yapılmakta olup, bütçeye yük getirmektedir. Bu ödemeler nedeniyle hükümetlere ciddi eleştiriler getirilmektedir. Bundan dolayı, bu projelerin projelerin inşaası ve işletilmesi doğrudan kamu yatırımlarıyla (geleneksel yöntem) daha az maliyetli olabilir.
Corporate Leverage, Monopolization, Zombification: an Analysis of the U.s. Nonfinancial Corporate Sector
(Kadir Has Üniversitesi, 2021) Sancaklı, Berke; Orhangazi, Özgür
The U.S. non-financial corporations hit record debt levels and leverage ratios even before the COVID-19 pandemic. A recent series of reports, news articles and academic studies show widespread attention to the increasing indebtedness of the non-financial corporate sector and raise concerns about the increases in corporate debt. Using firm-level data from a sample of the U.S. non-financial corporations covering from 1980 to 2019, I find that large firms rapidly increased their leverage ratios without increasing the corresponding level of real investment in last decade. In addition to leverage, most of the outstanding debt is held by very large firms. High profitability and low interest rates allow them higher interest coverage ratios. I also show that leverage is higher in highly concentrated industries and intangible intensive firms, potentially indicating a link between market power and debt levels. Concurrently, although smaller firms face lower leverage ratios, they also have lower interest coverage ratios. A remarkable proportion of firms now become zombie or ponzi units.
The Reaction of the Consumer Prices To Exchange Rate Movements: a Case Turkey
(Kadir Has Üniversitesi, 2019) Çiçek, Kardelen; Orhangazi, Özgür
The purpose of this study is to identify and analyze exchange rate pass through coefficients for the last 13 years of the Turkish economy. For this purpose, I use latest data of inflation levels and exchange rate for the period of January 2006 and March 2019. Unlike other studies focusing on implicit inflation targeting period and pre-inflation targeting periods, focusing on explicit inflation targeting regime in Turkey give real insight about how exchange rate affects inflation under the price stability objective. According to findings of this study, after the explicit inflation targeting period there is a low exchange rate pass through to inflation level. Also, good's inflation and services' inflation and core inflations are differently affected by a depreciation of Turkish lira against the U.S. Dollar. To capture this finding, I formulate three pass through equations, and test these equations by estimating a Markov Switching model.
The Transformation in Turkish Manufacturing :a Sectoral Perspective
(Kadir Has Üniversitesi, 2017) Başkaya, Kerem; Orhangazi, Özgür
In this dissertation, I try to answer the following questions: What are the constants for the manufacturing sector of Turkey in the last decade? What are the indicators that are changed within the manufacturing sector? To answer these questions, I use Annual Industry and Service Statistics dataset years from 2003 to 2014. I do exploratory and descriptive statistical work to analyze the structure of manufacturing sector. I do also use Pavitt Taxonomy, a new methodology for Turkish manufacturing sector, to categorize economic activity. After that, we decomposed the labor productivity into two: the intra-industry productivity and its structural components. My analysis showed that there is no significant change in the structure of Turkish manufacturing sector. The share of low-tech and high-tech sectors were decreased while the share of medium-low-tech was slightly increased according to main indicators such as value added, share of employment and investment. Also, science-based sectors were decreased according to the same indicators. Another important finding is that the intra-industry labor productivity growth increased significantly between 2004 and 2014 in the manufacturing sector. Yet, the static-shift effect (the structural change) was negative within the industry during this period.