Dynamics of Structural Transformation in Kütahya’s Economy (2004–2023)
Chapter from the book:
Gözen,
S.
&
Sağdıç,
E.
N.
(eds.)
2025.
Fiscal Developments in the Contemporary World: Theory and Practice.
Synopsis
This study examines the structural transformation of Kütahya’s economy over the period 2004–2023 at the sectoral level. Using province-level GDP chained volume index data published by the Turkish Statistical Institute, the study evaluates changes in the shares of agriculture, industry (manufacturing and non-manufacturing), construction, and services sectors through a descriptive analysis approach. The findings reveal a classical shift from agriculture to industry and modern services, consistent with the Clark-Fisher Hypothesis and Kuznets’ modern growth framework. While the share of agriculture declined significantly, the manufacturing industry more than doubled its share, indicating a structural move toward higher value-added production. Although the services sector remained relatively stable overall, the rapid growth of professional and financial services signals the onset of a knowledge-based servicification process. In conclusion, the case of Kütahya exemplifies a qualified regional structural transformation within Turkey, suggesting that manufacturing-led development has the potential to enhance the quality of economic growth.
