Recently, there has been an acknowledgement that the economic primacy of manufacturing has been shrinking in line with the emergence of the so-called ‘knowledge economy.’
This discussion papers summarises the discussion of whether manufacturing has lost its significance for economic development in favour of knowledge-based services. A case analysis of Turkey is provided in a separate section. Turkey is a revealing example in the sense that both services and manufacturing sectors played a crucial role in its economic growth. Furthermore, there is an ongoing discussion about whether Turkey is overly dependent on construction and serviceled sectors while its manufacturing sector has not developed enough to spur productivity and create more jobs for its young population in recent decades.
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