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This paper covers the interaction of the two performances; structural changes and competitiveness of leader industries of Turkey. After decision of trade liberalization in 1980, there have been important changes in the structure of manufacturing industry in Turkey which are basically as a result of outward orientation policies. Turkey has become an industrial goods exporter, particularly in motor vehicles, textiles and clothing, iron and steel and electrical machinery. The question that this paper arises is which performance of these leader industries causes the other between 1980-2007, in other words is structural change causes the competitiveness of these industries in Turkey or the competitiveness causes the development of its production structure.
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