The Construction Sector in Turkey: A Structural Path Analysis of Employment Linkages

Type Conference Paper - 20th International Input-Output Conference (26th--29th June, 2012, Bratislava, Slovakia)
Title The Construction Sector in Turkey: A Structural Path Analysis of Employment Linkages
Publication (Day/Month/Year) 2012
The construction sector in Turkey has been at a rise in the last decade, with annual growth rates between 10-20%. Interrupted by contraction in 2008 and 2009, high growth rates are observed in 2010 and 2011. Employment in construction has constantly risen. The GDP share increased from 5.4 % in 2002 to 6.5 % in 2007. Major driving forces behind are gentrification projects in most city centers, reconstruction in areas hit by earthquakes and floods, infrastructure (residential and commercial buildings as well as urban transport) upgrading for the Istanbul International Financial Center project, and capacity improvements in inter-city highways and railways. These works, including maintenance, are mainly undertaken by central and/or local public authorities or subsidized if the private sector is involved. Besides they also induce private construction activities in the rest of the economy. The linkages in the economy of this injection policy via construction final demand, a major component of investment, are worth studying especially in the ongoing crisis environment. The Structural Path Analysis of employment linkages of the construction sector is modeled. The latest available I-O data is for 2002. Identification of paths, hence principle areas of impacts form the basis for the assessment of implications for the macro economic problems of persistent unemployment

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