The Degree of Inclusivity of Economic Growth in Turkiye: Developing a New Method

Abstract

This study investigates whether economic growth in Turkiye has been inclusive or exclusive since theestablishment of the Republic in 1923. Inclusivity is used here as a substitute for sustainability. And ifit has been inclusive or exclusive during this period, the study delves into the specific periods thatcontributed most to the inclusivity or exclusivity of economic growth. To achieve this objective, anovel method defined in the paper has been employed to measure the dimension of inclusivity orexclusivity in different specific periods. According to the findings, overall, economic growth duringthe Republic's Years has been inclusive; however, it only began to be notably inclusive after 1980.Since then, economic growth has significantly favored lower- and middle-income groups, compared tohigher-income groups, indicating that it has been inclusive since 1980. The novel methodology,validated by its alignment with Gini coefficient trends in Turkiye, is a superior tool for measuringlong-run income inequality and assessing inclusive growth.