Productivity Dynamics in Türkiye’s Waste Management and Resource Recovery Sector: An Analysis Using Törnqvist Productivity Index (2009-2023)

Purpose: This study aims to conduct the first comprehensive efficiency analysis of Türkiye’s Waste Management and Resource Recovery sector at the industry level. It examines productivity variations across different firm sizes to inform policy development for Türkiye's circular economy transition. Methodology: The study employs the Törnqvist Productivity Index to measure total factor productivity changes from 2009 to 2023. It analyzes industry-level data from the Turkish Statistical Institute for micro, small, medium, and large firms within the E38 sector. Findings: Medium-sized firms demonstrate superior productivity performance with positive average TFP growth (0.0242), while large, micro, and small firms experience productivity declines (-0.0123, -0.0197, and -0.0228, respectively), which suggests an optimal balance of scale economies and managerial flexibility in medium-sized operations. Originality: This research presents the first comprehensive efficiency analysis of Türkiye’s Waste Management and Resource Recovery sector. It offers insights into productivity dynamics across different firm sizes and provides evidence-based recommendations for enhancing sector efficiency in an emerging economy context.