3
$\begingroup$

I avoided using nominal GDP per Capita because of Lira devaluation.

Here is the labour productivity of Turkey, Portugal, Romania and some other countries (2022)

https://data.oecd.org/lprdty/gdp-per-hour-worked.htm Expressed in 2010 Constant US Dollars

Turkey - $52.52

Portugal - $43.10

Slovenia - $46.51

Romania - $35.89

Mexico - $19.28

Spain - $53.10

Italy - $54.2

Now you look at GDP per Capita in PPP (2022)

https://www.imf.org/external/datamapper/PPPPC@WEO/TUR/SVN/ROU/PRT/MEX/ESP/ITA

Turkey - $39,280

Portugal - $42,700

Slovenia - $48,710

Romania - $43,180

Mexico - $23,560

Spain - $47,670

Italy - $52,560


Mexico is what I expected it to be, it is almost half the productivity of the other countries and has almost half the GDP per Capita PPP.

Turkey on the other hand has labour productivity similar to Spain and Italy and is yet nowhere near their GDP per Capita PPP. Romanian productivity is at $35/hour yet manages to have a higher GDP per Capita PPP than Turkey with 52/hour.


Can someone explain this? I just measured labour productivity for 2023, from labour productivity growth stats. Turkey is going to surpass Italy and Spain when it comes to labour productivity. So why is Turkey much poorer than Spain and Italy?

https://www.ceicdata.com/en/indicator/turkey/labour-productivity-growth#:~:text=What%20was%20Turkey's%20Labour%20Productivity,table%20below%20for%20more%20data.

$\endgroup$
5
  • $\begingroup$ Romania exhibits the same behavior. $\endgroup$
    – Giskard
    May 15 at 14:02
  • $\begingroup$ Yes, I don't understand why there is such a massive gap between labour productivity and income levels. Turkey's Gini Index is similar to Mexico and the USA, it's not as bad as South Africa or Russia. So I'm left guessing.. $\endgroup$
    – David
    May 15 at 15:06
  • $\begingroup$ this could be explained by different dependency ratios did you looked at that? I am guessing female labor force participation in Turkey is also probably lower so that’s another possible explanation $\endgroup$
    – 1muflon1
    May 15 at 15:13
  • $\begingroup$ Yeah, you could be right. data.worldbank.org/indicator/… $\endgroup$
    – David
    May 15 at 15:33
  • 1
    $\begingroup$ I think it is also because of a high unemployment rate. Labor productivity can be the same, but since there are a lot of non-working persons, the slice is smaller for everyone. (As the data show: data.worldbank.org/indicator/…) $\endgroup$
    – teddi
    May 15 at 15:44

1 Answer 1

0
$\begingroup$

It could be that Turkey has

  1. a lower capital stock, and/or
  2. a lower ratio of fixed capital formation to GDP

than Italy or Romania.

$\endgroup$
1
  • $\begingroup$ Why is this not reflected in labor productivity, which measures total output (created with labor and capital) devided by worked hours? $\endgroup$
    – Giskard
    May 16 at 6:03

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.