This project investigates the growth and diversification patterns of countries in the presence of industry linkages in four separate but complementary objectives. In the fırst objective, the consequences of the linkages will be captured through the observed pattern of industries throughout countries and an economic micro-foundation will be provided using trade models. In the second objective, the diversification pattern and speed of countries will be related to the country level and product level quality measures. In the third one, temporal aspect of the trade data will be used and the effects of the spillovers will be analyzed using vector autoregressive models. Finally, in the fourth objective, effects of one specific type of spillover, namely the Input-Output linkages, will be explored both theoretically and empirically.The Experienced Researcher intends to build a successful academic career and impacting the decisions of policymakers within Turkey and Europe. This fellowship will enable Dr. Yildirim to embark on such a journey in a suitable environment provided by Koç University. The fellowship will complement Dr. Yildirim’s interdisciplinary background and he will also have the opportunity to establish himself in the field of economics.