Dr. Sultan Ahmad Taraki, Dr. Mesut Murat Arslan
Abstract: Small and medium-sized enterprises (SMEs) constitute a major part of the economies of both advanced and developing countries. Definitely supporting the SMEs can provide a sustainable and well-adjusted economic growth and development. Thus, SMEs may have a vital role in capital formation and economic prosperity of developing countries. The integral role of SMEs within an economy has become a source of inspiration for many academicians to study SMEs from different perspectives.In this research unbalanced capital formation theory used as theoretical framework. According to this theory investment in key sectors are more suitable for SME development in capital formation for poverty reduction. To obtain the research objective and determine the Key sectors of the Turkish economy as well as to understand how key sectors evolved in the Turkish economy during the time, the input-output tables of 1973, 1979, 1990, 2002, and 2012 are analyzed. To complete the research and analysis input-output table a new proposal from network theory uses as research methodology. The research finding indicates that the number of key sectors in the Turkish economy has evolved during the time, and these key sectors through backward and forwards effects positively increased the number of SMEs.
Keywords: Input-Output Analysis, Key Sectors of the Turkish Economy, Network Theory