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Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey

Year 2012, Volume: 12 Issue: 4, 475 - 486, 01.09.2012

Abstract

In this study, the effects of agglomeration economies and growth of neighbours on regional income disparities are investigated by testing two challinging hypotheses (“spread effect” and “backwash effect”). Initially, Herfindahl Index, Gini Coefficient and Location Quotient are calculated for Turkish manufacturing industries in each province by using the production, value added and employment data; then Beta convergence analysis is done by panel data estimation. Estimation results for 73 provinces reveal that income disparities decrease by time, agglomeration slows down convergence process while growth of neighbours promotes convergence. When the Beta analyses are repeated for relatively more homogeneous 7 regions, agglomeration is found to influence convergence positively

References

  • Akdede, S.H. ve Erdal, F. (2003) “Public Capital in Regional Growth Convergence: Evidence from a Developing Country” Open Minds - Europe in Global World - Blending Differences, University of Lodz and CASE Foundation, Lodz, Eylül 13-14.
  • Arbia, G.M. ve Piras, G. (2005) “Convergence in Per-Capita GDP across European Regions Using Panel Data Models Extended to Spatial Autocorrelation Effects” Institute for Studies and Economic Analyses Working Papers Series, No:51.
  • Arellano, M. ve Bond, S. (1991) “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations” Review of Economic Studies, 58(2): 277-297.
  • Baltagi, B.H. (2001) Econometric Analysis of Panel Data, 2nd Edition, New York, John Wiley & Sons LTD.
  • Barkley, D. L., Kim, Y. ve Henry, M. S. (2001) “Do Manufacturing Plants Cluster Across Rural Areas? Evidence From A Probabilistic Modeling Approach” Regional Economic Development Research Laboratory, Clemson University, Clemson, South Carolina.
  • Barro, R.J. ve Sala-i-Martin, X. (1991) “Convergence across States and Regions” Brookings Papers on Economic Activity, 22(1):107-182.
  • Berber, M., Yamak, R. ve Artan, S. (2000) “Türkiye’de Yakınlaşma Hipotezinin Bölgeler Bazında Geçerliliği Üzerine Ampirik Bir Çalışma: 1975-1997”, Karadeniz Teknik Üniversitesi 9. Ulusal Bölge Bilimi ve Bölge Planlama Kongresi Bildiriler Kitabı: 51-59.
  • Brakman, S., Garretsen, H. ve van Marrewijk, C. (2001) An Introduction to Geographical Economics: Trade, Location and Growth, Cambridge, University Press.
  • Carlino, G.A. ve Mills, L.O. (1993) “Are Regional Incomes Converging?” Journal of Monetary Economics, 32(2):335-346.
  • Doğruel, F. ve Doğruel, S. (2003) “Türkiye’de Bölgesel Gelir Farklılıkları ve Büyüme” Köse, vd. (der.) “İktisat Üzerine Yazılar I: Küresel Düzen” İstanbul, İletişim Yayınları.
  • Drucker, J. ve Feser, E. (2012) “Regional Industrial Structure and Agglomeration Economies: An Analysis of Productivity in Three Manufacturing Industries” Regional Science and Urban Economics, 42(1-2):1-14.
  • Erlat, H. (2005) “Türkiye’de Bölgesel Yakınsama Sorununa Zaman Dizisi Yaklaşımı” Erlat, H (Ed.) “Bölgesel Gelişme Stratejileri ve Akdeniz Ekonomisi” Ankara, Türkiye Ekonomi Kurumu.
  • Erk, N., Ateş, S. ve Direkçi T. (2000) “Convergence and Growth within GAP Region (South Eastern Anatolia Project) and overall Turkey’s Regions” Orta Doğu Teknik Üniversitesi IV. ODTÜ Uluslarası Ekonomi Kongresi,13-16 Eylül, Ankara.
  • Evans, P. ve Karras, G. (1996) “Convergence Revisited” Journal of Monetary Economics, 37(2-3):24- 265.
  • Filiztekin, A. (1998) “Convergence across Industries and Provinces in Turkey” Koç University Working Paper Series, No:08.
  • Gezici, F. ve Hewings, G.J.D. (2004) “Regional Convergence and the Economic Performance of Peripheral Areas in Turkey” Review of Urban and Regional Development Studies, 16(2): 113-132.
  • Henderson, J.V., Kuncoro, A. ve Turner, M. (1995) “Industrial Development in Cities” Journal of Political Economy, 103(5):1067-1090.
  • Hirschman, A.O. (1958) The Strategy of Economic Development, New Haven CT, Yale University Press.
  • Islam, N. (1995) “Growth Empirics: A Panel Data Approach” The Quarterly Journal of Economics, 110(4):1127-1170.
  • Islam, N. (2003) “What Have We Learnt from the Convergence Debate?” Journal of Economic Surveys, 17(3):309-362.
  • Karaalp H.S. ve Erdal F. (2009) “Agglomeration Economies and Agglomeration in Turkish Manufacturing Sector” Selected Proceedings of the Second International Conference on Social Sciences: 10-13 September, İzmir.
  • Karadağ, M., Deliktaş, E. ve Önder, A. Ö. (2004) “The Effects of Public Capital on Private Sector Performance in Turkish Regional Manufacturing Industries” European Planning Studies, 12(8):1145-1156.
  • Krugman, P. (1991) Geography and Trade, Cambridge, MIT Pres.
  • Lall, S. ve Yılmaz, S. (2001) “Regional Economic Convergence: Do Policy Instruments Make Difference? “ Annals of Regional Science, 35(1):153-166.
  • Madariaga, N., Montout, S. ve Ollivaud, P. (2005) “Regional Convergence and Agglomeration in Argentina: A Spatial Panel Data Approach” Cahiers de la Maison des Sciences Economiques, 6:1-25.
  • Mankiw, N.G., Romer, D. ve Weil, D. N. (1992) “A Contribution to the Empirics of Economic Growth” The Quarterly Journal of Economics, 107(2):407-437.
  • Michaels, G. (2006) “The Long-Term Consequences of Regional Specialization” The Center for Economic Policy Research Discussion Paper, No: 766.
  • Myrdal, G. (1957) Economic Theory and Underdeveloped Regions, London, Duckworth.
  • University of Bonn, Phare ACE Project P98-1117-R, June, Bonn.
  • Önder, A. Ö., Karadağ, M. ve Deliktaş, E. (2007) Industrial Activity in Accession Countries: Data and “The Effects of Public Capital on Regional Convergence in Turkey” Ege University Department of Economics Working Paper Series, No: 07/01.
  • Pardo, I. (2005) “Growth, Convergence, and Social Cohesion in the European Union” International Advances in Economic Research, 11(4):459-467.
  • Perroux, F. (1950) “Economic Spaces: Theory and Applications” Quarterly Journal of Economics, 64(1):89- 104. Aktaran Parr, J.B. (1999) “Growth-pole Strategies in Regional Economic Planning: A Retrospective View. Part 1. Origins and Advocacy” Urban Studies, 36(7):1195-1215.
  • Quah, D. (1996) “Convergence as Distribution Dynamics (with or Without Growth)” Centre for Economic Performance CEP Discussion Paper, No:317.
  • Rassekh, F. (1998) “The Convergence Hypothesis: History, Theory, and Evidence” Open Economies Review, 9(1):85-105.
  • Sala-i-Martin, X. (1996) “The Classical Approach to Convergence Analysis” The Economic Journal, 106(437):1019-1036.
  • Traistaru, I. ve Iara, A. (2002) “European
  • Valdes, B. (1999) Economic Growth Theory, Empirics and Policy, Cheltenham, Edward Elgar Publishing Limited.
  • Yamanoğlu K.B. (2008) “Türkiye’de Sosyo- Ekonomik Faktörlerin İller Arası Yakınsama Üzerine Etkileri” İstatistikçiler Dergisi 1:33-49.
  • Zeren, F. ve Yılancı, V. (2011) “Türkiye’de Bölgeler Arası Gelir Yakınsaması: Rassal Katsayılı Panel Veri Analizi Uygulaması” Business and Economics Research Journal, 2(1): 143-151.

Sanayileşmenin Bölgesel Yığılması ve Komşu İllerin Büyümesi Gelir Farklılıklarını Artırır mı? Türkiye için Bir Beta Yakınsama Analizi

Year 2012, Volume: 12 Issue: 4, 475 - 486, 01.09.2012

Abstract

Bu çalışmada, sanayileşmenin belirli bölgelerde yığılması ve komşu illerin büyümesinin, iller arasındaki gelir farklılıklarına etkisi, iki çelişen hipotez çerçevesinde (“yayılma etkisi” ve “geri bırakma etkisi”) araştırılmaktadır. Öncelikle Türk imalat sanayindeki yığılma katsayıları üretim, katma değer ve istihdam verileri kullanılarak Herfindahl Endeksi, Gini Katsayısı ve Lokasyon Oranı yöntemleriyle hesaplanmış, daha sonra iller arasındaki beta yakınsama, panel veri yöntemi ile analiz edilmiştir. 73 il arasında yapılan analiz sonuçları, zamanla iller arasındaki gelir farklılıklarının azaldığını, yığılmanın bu süreci yavaşlattığını fakat komşu illerin büyümesinin bu süreci hızlandırdığını göstermiştir. Daha homojen bir grup olan 7 coğrafi bölge alt örneklemlerinde yapılan analizlerde ise, bölge içindeki belirli illerin sanayileşmesinin yakınsamayı olumlu etkilediği bulunmuştur

References

  • Akdede, S.H. ve Erdal, F. (2003) “Public Capital in Regional Growth Convergence: Evidence from a Developing Country” Open Minds - Europe in Global World - Blending Differences, University of Lodz and CASE Foundation, Lodz, Eylül 13-14.
  • Arbia, G.M. ve Piras, G. (2005) “Convergence in Per-Capita GDP across European Regions Using Panel Data Models Extended to Spatial Autocorrelation Effects” Institute for Studies and Economic Analyses Working Papers Series, No:51.
  • Arellano, M. ve Bond, S. (1991) “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations” Review of Economic Studies, 58(2): 277-297.
  • Baltagi, B.H. (2001) Econometric Analysis of Panel Data, 2nd Edition, New York, John Wiley & Sons LTD.
  • Barkley, D. L., Kim, Y. ve Henry, M. S. (2001) “Do Manufacturing Plants Cluster Across Rural Areas? Evidence From A Probabilistic Modeling Approach” Regional Economic Development Research Laboratory, Clemson University, Clemson, South Carolina.
  • Barro, R.J. ve Sala-i-Martin, X. (1991) “Convergence across States and Regions” Brookings Papers on Economic Activity, 22(1):107-182.
  • Berber, M., Yamak, R. ve Artan, S. (2000) “Türkiye’de Yakınlaşma Hipotezinin Bölgeler Bazında Geçerliliği Üzerine Ampirik Bir Çalışma: 1975-1997”, Karadeniz Teknik Üniversitesi 9. Ulusal Bölge Bilimi ve Bölge Planlama Kongresi Bildiriler Kitabı: 51-59.
  • Brakman, S., Garretsen, H. ve van Marrewijk, C. (2001) An Introduction to Geographical Economics: Trade, Location and Growth, Cambridge, University Press.
  • Carlino, G.A. ve Mills, L.O. (1993) “Are Regional Incomes Converging?” Journal of Monetary Economics, 32(2):335-346.
  • Doğruel, F. ve Doğruel, S. (2003) “Türkiye’de Bölgesel Gelir Farklılıkları ve Büyüme” Köse, vd. (der.) “İktisat Üzerine Yazılar I: Küresel Düzen” İstanbul, İletişim Yayınları.
  • Drucker, J. ve Feser, E. (2012) “Regional Industrial Structure and Agglomeration Economies: An Analysis of Productivity in Three Manufacturing Industries” Regional Science and Urban Economics, 42(1-2):1-14.
  • Erlat, H. (2005) “Türkiye’de Bölgesel Yakınsama Sorununa Zaman Dizisi Yaklaşımı” Erlat, H (Ed.) “Bölgesel Gelişme Stratejileri ve Akdeniz Ekonomisi” Ankara, Türkiye Ekonomi Kurumu.
  • Erk, N., Ateş, S. ve Direkçi T. (2000) “Convergence and Growth within GAP Region (South Eastern Anatolia Project) and overall Turkey’s Regions” Orta Doğu Teknik Üniversitesi IV. ODTÜ Uluslarası Ekonomi Kongresi,13-16 Eylül, Ankara.
  • Evans, P. ve Karras, G. (1996) “Convergence Revisited” Journal of Monetary Economics, 37(2-3):24- 265.
  • Filiztekin, A. (1998) “Convergence across Industries and Provinces in Turkey” Koç University Working Paper Series, No:08.
  • Gezici, F. ve Hewings, G.J.D. (2004) “Regional Convergence and the Economic Performance of Peripheral Areas in Turkey” Review of Urban and Regional Development Studies, 16(2): 113-132.
  • Henderson, J.V., Kuncoro, A. ve Turner, M. (1995) “Industrial Development in Cities” Journal of Political Economy, 103(5):1067-1090.
  • Hirschman, A.O. (1958) The Strategy of Economic Development, New Haven CT, Yale University Press.
  • Islam, N. (1995) “Growth Empirics: A Panel Data Approach” The Quarterly Journal of Economics, 110(4):1127-1170.
  • Islam, N. (2003) “What Have We Learnt from the Convergence Debate?” Journal of Economic Surveys, 17(3):309-362.
  • Karaalp H.S. ve Erdal F. (2009) “Agglomeration Economies and Agglomeration in Turkish Manufacturing Sector” Selected Proceedings of the Second International Conference on Social Sciences: 10-13 September, İzmir.
  • Karadağ, M., Deliktaş, E. ve Önder, A. Ö. (2004) “The Effects of Public Capital on Private Sector Performance in Turkish Regional Manufacturing Industries” European Planning Studies, 12(8):1145-1156.
  • Krugman, P. (1991) Geography and Trade, Cambridge, MIT Pres.
  • Lall, S. ve Yılmaz, S. (2001) “Regional Economic Convergence: Do Policy Instruments Make Difference? “ Annals of Regional Science, 35(1):153-166.
  • Madariaga, N., Montout, S. ve Ollivaud, P. (2005) “Regional Convergence and Agglomeration in Argentina: A Spatial Panel Data Approach” Cahiers de la Maison des Sciences Economiques, 6:1-25.
  • Mankiw, N.G., Romer, D. ve Weil, D. N. (1992) “A Contribution to the Empirics of Economic Growth” The Quarterly Journal of Economics, 107(2):407-437.
  • Michaels, G. (2006) “The Long-Term Consequences of Regional Specialization” The Center for Economic Policy Research Discussion Paper, No: 766.
  • Myrdal, G. (1957) Economic Theory and Underdeveloped Regions, London, Duckworth.
  • University of Bonn, Phare ACE Project P98-1117-R, June, Bonn.
  • Önder, A. Ö., Karadağ, M. ve Deliktaş, E. (2007) Industrial Activity in Accession Countries: Data and “The Effects of Public Capital on Regional Convergence in Turkey” Ege University Department of Economics Working Paper Series, No: 07/01.
  • Pardo, I. (2005) “Growth, Convergence, and Social Cohesion in the European Union” International Advances in Economic Research, 11(4):459-467.
  • Perroux, F. (1950) “Economic Spaces: Theory and Applications” Quarterly Journal of Economics, 64(1):89- 104. Aktaran Parr, J.B. (1999) “Growth-pole Strategies in Regional Economic Planning: A Retrospective View. Part 1. Origins and Advocacy” Urban Studies, 36(7):1195-1215.
  • Quah, D. (1996) “Convergence as Distribution Dynamics (with or Without Growth)” Centre for Economic Performance CEP Discussion Paper, No:317.
  • Rassekh, F. (1998) “The Convergence Hypothesis: History, Theory, and Evidence” Open Economies Review, 9(1):85-105.
  • Sala-i-Martin, X. (1996) “The Classical Approach to Convergence Analysis” The Economic Journal, 106(437):1019-1036.
  • Traistaru, I. ve Iara, A. (2002) “European
  • Valdes, B. (1999) Economic Growth Theory, Empirics and Policy, Cheltenham, Edward Elgar Publishing Limited.
  • Yamanoğlu K.B. (2008) “Türkiye’de Sosyo- Ekonomik Faktörlerin İller Arası Yakınsama Üzerine Etkileri” İstatistikçiler Dergisi 1:33-49.
  • Zeren, F. ve Yılancı, V. (2011) “Türkiye’de Bölgeler Arası Gelir Yakınsaması: Rassal Katsayılı Panel Veri Analizi Uygulaması” Business and Economics Research Journal, 2(1): 143-151.
There are 39 citations in total.

Details

Other ID JA36PK33RH
Journal Section Research Article
Authors

Hacer Simay Karaalp

Fuat Erdal This is me

Publication Date September 1, 2012
Published in Issue Year 2012 Volume: 12 Issue: 4

Cite

APA Karaalp, H. S., & Erdal, F. (2012). Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey. Ege Academic Review, 12(4), 475-486.
AMA Karaalp HS, Erdal F. Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey. ear. September 2012;12(4):475-486.
Chicago Karaalp, Hacer Simay, and Fuat Erdal. “Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey”. Ege Academic Review 12, no. 4 (September 2012): 475-86.
EndNote Karaalp HS, Erdal F (September 1, 2012) Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey. Ege Academic Review 12 4 475–486.
IEEE H. S. Karaalp and F. Erdal, “Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey”, ear, vol. 12, no. 4, pp. 475–486, 2012.
ISNAD Karaalp, Hacer Simay - Erdal, Fuat. “Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey”. Ege Academic Review 12/4 (September 2012), 475-486.
JAMA Karaalp HS, Erdal F. Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey. ear. 2012;12:475–486.
MLA Karaalp, Hacer Simay and Fuat Erdal. “Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey”. Ege Academic Review, vol. 12, no. 4, 2012, pp. 475-86.
Vancouver Karaalp HS, Erdal F. Do Agglomeration and Growth of Neighbours Increase Regional Income Disparities? Beta Convergence Analysis for Turkey. ear. 2012;12(4):475-86.