100 Years of Economic Growth of the Republic
Chapter from the book:
Çifçi,
İ.
&
Kılıç,
R.
(eds.)
2024.
A 100-Year Panorama of the Turkish Economy I.
Synopsis
The aim of this study is to evaluate Türkiye’s economic performance and the changes in its production and demand structure over the 100-year period from its establishment as a republic in 1923 to 2022. For this purpose, the study first explains concepts such as Gross Domestic Product (GDP), Gross National Product (GNP), economic growth, cyclical fluctuations, and short-run and long-run economic growth. It then analyzes the structure of total demand during the 1998-2023 period, the production components of the Turkish economy, and the income shares factor of production. Lastly, the study examines Türkiye's economic growth performance over distinct periods within the 100-year timeline and compares it with the performance of 30 developed and developing countries. The findings of the study can be summarized as follows: i) During the early years of the Republic, agriculture and industry accounted for approximately 45% and 10% of production, respectively. By 2022, these shares had changed to 6% and 27%, respectively. ii) Despite experiencing political and economic instability since its establishment, Türkiye has achieved an average annual economic growth rate of 3.84%, which is remarkably high. Over the 100-year period, Türkiye has managed to double its income every 20 years. iii) When compared to 30 developed and developing countries of today, Türkiye ranks as the second country after Russia in terms of income growth during the 1923-2022 period.