|Title||The composition of growth matters: South Korea vs. Turkey|
|Publisher||[Ankara, Turkey] : Central Bank of the Republic of Turkey|
|Publication Date||2016 - 11|
|Series Title||CBT research notes in Economics|
Having a real GDP that compares to the half of Turkish GDP in 1970, South Korea caught up with Turkey in the late 1980s and then outpaced it. In this study, we aim to understand why the convergence experiences of the two countries differ by comparing them in terms of their GDP compositions. 2014 per capita nominal income of Turkey has been achieved around 2000 in Korea. Hence, the countries reached to similar levels of income after 35 to 40 years upon their adoption of export-led growth. However, “how” they have arrived at this level diverges. The findings indicate that Turkey has reached it by relatively high consumption, and low investment with subdued non-residential construction.