Productivity has stalled, undermined by the fragmentation of the business sector. The most efficient firms do not grow at full potential, while lower productivity entities survive thanks to the incomplete enforcement of rules and regulations. A comprehensive upgrading of the business environment would boost productivity and foster social inclusion.
- Upgrade vocational education in co-operation with the business sector.
- Grant more autonomy and resources to schools and universities to reduce the large quality gaps.
- Reduce the de facto differences in the tax and social obligations related to the size of firms.
- Liberalise fixed-term and temporary work agency contracts.
- Scrutinise competition in service industries.
- Accelerate the liberalisation of network sectors.
Source: OECD May 2017 Economic Outlook database.
R. Gönenç, O. Röehn, V. Koen and F. Öğünç, "Fostering Inclusive Growth in Turkey by Promoting Structural Change in the Business Sector", OECD Working paper No. 1161, 2014.
R. Gönenç, O. Röehn, V. Koen and Ş. Saygili, "Structural Reforms to Boost Turkey's Long-Term Growth", OECD Working paper No. 987, 2012.
Productivity - enhancing institutions