Does Income Converge in Turkey? an Empirical Assessment
Abstract
Turkey has recorded high growth rates during last two decades that have led to a structural change in the income level of the provinces. This shift arises to the question of whether the regional disparities in Turkey converge or diverge. The growth performance of Turkey has also led to change the structure of the economy which results in the move from rural areas to urban areas. The empirical examination of the income convergence in Turkey thereby seems to be timely and important in order to provide insights for analyzing the causes and consequences of regional disparities and connecting a link between economic growth and urbanization. We collect the per capita income data of 73 provinces during the period 1992- 2013 and estimate different econometric models by controlling for structural changes in the income. The results overall provide an evidence on the income divergence between the east and west of Turkey. We discuss why Turkish urbanization which is in tandem with economic development process is not a stand-alone for the convergence and discover that the region-specific structural characteristics (the geographical conditions, the terrorist incidents, the regional investment policies, and the horizontal imbalances) seem to be still prevailing.
Keywords
References
- Abdioğlu, Z. and Uysal, T. (2013). Türkiye’de Bölgeler arası Yakınsama: Panel Birim Kök Analizi. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 27(3), 125-143.
- Arbia, G., Battisti, M., and Di Vaio, G. (2010). Institutions and geography: Empirical test of spatial growth models for European regions. Economic Modelling, 27, 12-21.
- Aslan, A. and Kula, F. (2011). Is there really divergence across Turkish provinces? Evidence from the Lagrange Multiplier unit root test. European Planning Studies, 19(3), 539-549.
- Azomahou, T.T., El ouardighi, J., Nguyen-Van, P., and Pham, T.K. (2011). Testing convergence of European regions: a semiparametric approach. Economic Modelling, 28, 1202-1210.
- Barro, R.J. (1991). Economic growth in a cross-section of countries. Quarterly Journal of Economics, 106, 407-445.
- Barro, R.J. and Sala-i Martin, X. (1991). Convergence across states and regions. Brookings Papers on Economic Activity, 1, 107-158.
- Barro, R.J. and Sala-i Martin, X. (1992). Convergence. Journal of Political Economy, 100, 223-251. Barro, R.J. and Sala-i Martin, X. (1995). Economic growth. New York: Mc Graw Hill.
- Battisti, M. and G. Di Vaio. (2008). A spatially filtered mixture of β-convergence regressions for EU regions 1980-2002. Empirical Economics, 34, 105-121.
Details
Primary Language
English
Subjects
Economics
Journal Section
Research Article
Publication Date
January 1, 2019
Submission Date
January 20, 2018
Acceptance Date
September 27, 2018
Published in Issue
Year 2019 Volume: 19 Number: 1