TÜRK EKONOMİSİ

WTO is prepared the mentioned classification list.

The three-sector model accepts manufacturing activites as the secondary sector of the economy.

Engel's Law states that the income elasticity of demand for services is greater than 1.

Productivity gap between manufacturing and services sectors activities causes the so called "cost disease".

World Bank does not accept construction activities as service sector component.

The share of the services sector in total GDP in Turkey after 2001 is around 60% every year.

Iraq citizens have the highest share in foreigners who bought houses in Turkey considering the recent data.

According to data used in the chapter, TV investments has the highest share in media sector.

Increasing finance cost may be a burden for the rapid growth of Turkish construction sector.

Russian Federation has the highest share according to data used in the chapter.

According to the WTO (World Trade Organization), there are twelve primary services in the services sector. These services are announced in the WTO’s “Services Sectoral Classification List.” The services in the “List” as follows:

Business services

Communication services

Construction and related engineering services

Distribution services

Educational services

Environmental services

Financial services

Health-related and social services

Tourism and travel-related services

Recreational, cultural and sporting services

Transport services

Other services not included elsewhere (WTO, 1991).

WTO (1991). Services Sectoral Classification List. [online] Available at: http://www.wto.org/ english/tratop_e/serv_e/mtn_gns_w_120_e.doc [Accessed 1 Oct. 2019].

Goods are tangible physical entities, but services are beneficial activities provided by other people. Goods’ owners can change, but the services’ owners can not. Goods can be evaluated easier than services because services are highly variable for each provider. The purchaser can return a good, but services cannot be returnable in most cases. Goods can be separable from the seller. Services can not. A specific good is highly the same for every product. However, services can vary each time. Goods can be stored, but most of the services cannot be stored.

Goods are tangible physical entities, but services are beneficial activities provided by other people. Goods’ owners can change, but the services’ owners can not. Goods can be evaluated easier than services because services are highly variable for each provider. The purchaser can return a good, but services cannot be returnable in most cases. Goods can be separable from the seller. Services can not. A specific good is highly the same for every product. However, services can vary each time. Goods can be stored, but most of the services cannot be stored.

Goods are tangible physical entities, but services are beneficial activities provided by other people. Goods’ owners can change, but the services’ owners can not. Goods can be evaluated easier than services because services are highly variable for each provider. The purchaser can return a good, but services cannot be returnable in most cases. Goods can be separable from the seller. Services can not. A specific good is highly the same for every product. However, services can vary each time. Goods can be stored, but most of the services cannot be stored. Goods have a multistage life cycle; they are produced, stored, transported, sold, consumed, disposed, and recycled if possible. However, the services’ life cycle is bound with the time that the activity occurs.

“Engel’s Law,” which is named after statistician Ernst Engel, states that income elasticity of demand for foods is between 0 and 1, and income elasticity of demand for services is greater than 1. Engel’s Law means that when per capita income increases, the percentage of food spending share decreases.

“Exogenous Demand Shock Hypothesis” states that there is a change in an exogenous variable, which causes an increase in the total demand for services.

“Cost Disease Hypothesis of Baumol (1967)” states that there is a productivity gap between manufacturing and services. This theory was made considering the field of art. Now it takes the same number of musicians as the 19th century to perform a work of Beethoven. So, productivity growth in such areas is nearly zero. As a result of this, services/manufacturing prices ratio go up inversely correlated to services and manufacturing productivity ratio. However, this hypothesis fails in productive technology-based services such as telecommunication (Hyun, 2006).

Hyun, J. (2006). The Shift to the Service Economy. [PDF] Faculty.washington.edu. Available at:https://faculty.washington.edu/karyiu/confer/ seoul06/papers/kim_hj.pdf [Accessed 1 Oct. 2019].

“Deindustrialization Hypothesis” states the situation caused by the transfer of the labor-intensive manufacturing industries to less developed countries and the expansion of the trade between developed and less developed countries. So, trade-related services grow in the World economy, and the manufacturing sector ratio in developed countries decreases which causes a passive increase in the percentage of the services in the developed countries’ GDPs (Hyun, 2006).

Hyun, J. (2006). The Shift to the Service Economy. [PDF] Faculty.washington.edu. Available at:https://faculty.washington.edu/karyiu/confer/ seoul06/papers/kim_hj.pdf [Accessed 1 Oct. 2019].

The factoring sector operates within the framework of the “Law on Financial Leasing, Factoring and Finance Companies” numbered 6361 dated 21/11/2012. According to article thirty eight of this law; factoring agreement defined as “The contract that includes any or all of the financing or factoring guarantee functions as well as the functions provided by factoring company such as keeping of debtor and customer accounts and collection of debts by taking over receivables that certified by invoice arising from the sale of goods or services and that will arise from the sale of goods or services that can be certified in accordance with the procedures and principles determined by the committee (Official Newspaper, 2019).

Official Newspaper (2019). Finansal Kiralama, Faktoring ve Finansman Şirketleri Kanunu. [online] Available at: http://www.resmigazete.gov. tr/eskiler/2012/12/20121213-1.htm [Accessed 1 Oct. 2019].

There is no natural gas pipeline know as Raman-Garzan Natural Gas Pipeline (RGNG). However there is a  Raman-Garzan petroleum pipeline.