A Reevaluation of Turkey s industrialization performance: large and small firms during thr great depression, 1929 1939
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Abstract
The aim of this thesis is a quantitative reevaluation of the industrializationperformance of Turkey during the 1930's. The Great Depression of 1929 was aturning point in the world economic history. 1929-1939 is the decade where we canfind the origins of an lSI process in Turkey as in many other developing countries. Inmost of the literature about the economic history of Turkey, the emphasis was on twocharacteristics of this period: the formation of the large scale, mechanized enterprisesand etatism.But one aspect of the early years of the lSI process in a developing countryremained almost unstated. That is the widespread existence of small scale producersworking with traditional technology either in workshops or in homes, and thecoexistence rather than mutual exclusiveness of producers operating with differentscale and technology.This study is an attempt to include the small scale producers into the picture inthe evaluation of the industrialization of this period. In this purpose, the existingestimates of manufacturing value added are revised. The main conclusion is that,during the early years of an lSI process, the large scale enterprises cannot representthe overall manufacturing industry and the exclusion of the small scale producers willproduce misleading results. With the inclusion of small scale producers into thepicture, the result is slower, but still impressive growth rates for the manufacturingindustry and the overall economy when compared to other developing countries of theperiod.
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