Economic transformation through political change? Evidence from Turkey

Abstract

Turkey recently initiated a political change by replacing its parliamentary model with the presidential governmental system (PGS) to achieve, inter alia, a structural transformation from an efficiency-driven to an innovation-driven model of growth. To investigate the PGS's potential for mediating such a change, this paper uses four key concepts of institutionalist analysis: systemic governance, credible commitment, institutional fragmentation and institutional traps. In doing so, the paper concludes that the PGS's potential to unleash a structural transformation towards an innovation-driven and high growth depends on the prospect of its mediating an imperative commitment in political and economic governance. This prospect proves to be weak due to both the PGS's institutional pillars and the path-dependent dynamics of the country's trap in efficiency-driven growth that have become embedded under a parliamentary model.