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Convergence Across Industries and Provinces in Turkey

Year 2018, Volume: 7 Issue: 3, 1 - 32, 31.12.2018

Abstract

This paper investigates convergence across Turkish provinces between 1975 and 1995. The evidence shows that convergence across Turkish provinces is conditional unlike the absolute convergence pattern found for the regions within the developed nations. Using a fixed effect model it has been shown that estimated steady states differ significantly and the major determinant of the position of the steady states is the initial condition. The paper also investigates the sources of convergence by examining sectoral convergence pattern. It is found that productivity levels and productivity growth vary across sectors and across provinces. Changes in sectoral employment contribute significantly both to productivity growth and convergence at the aggregate level.

Thanks

This study has been disseminated in Koç University Working Paper Series in 1999 which is one of the most cited paper in its field. The editor thanks to Prof. Filiztekin for permitting to reprint his study in Ekonomi-tek.

References

  • Barro, R. (1990), “Government Spending in a Simple Model of Endogenous Growth,” Journal of Political Economy, 98, S103-S125.
  • Barro, R. (1991), “Economic Growth in a Cross Section of Countries,” Quarterly Journal of Economics, 106, 407-443.
  • Barro, R., G. Mankiw and X. Sala-i-Martin (1995), “Capital Mobility in Neoclassical Models of Growth,” American Economic Review, 85, 103-115.
  • Barro, R. and X. Sala-i-Martin (1991), “Convergence Across States and Regions,” Brookings Papers of economic Activity, 1:1991, 107-158.
  • Barro, R. and X. Sala-i-Martin (1992), “Convergence,” Journal of Political Economy, 100, 223-251.
  • Barro, R. and X. Sala-i-Martin (1995), Economic Growth, McGraw-Hill Inc., New York.
  • Bernard, A. and C. Jones (1996), “Productivity and Convergence Across U.S. States and Industries,” in S. Durlauf, J. Helliwell and B. Raj, eds., Long-Run Economic Growth, Physica-Verlag, Heidelberg.
  • Braun, J. (1993), Essays on Economic Growth and Migration, Ph.D. Dissertation, Harvard University.
  • Canova, F. and A. Marcet (1995), “The Poor Stay Poor: Non-convergence Across Countries and Regions,” CEPR Discussion Paper no.1265.
  • Cashin, P. and R. Sahay (1996), “Internal Migration, Center-State Grants, and Economic Growth in the States of India,” IMF Staff Papers, 43, 123-171.
  • Coulombe, S. and F. Lee (1995), “Convergence Across Canadian Provinces, 1961 to 1991,” Canadian Journal of Economics, 28, 886-898.
  • de la Fuente, A. (1996), “On the Sources of Convergence: A Close Look at the Spanish Regions,” CEPR Discussion Paper no. 1543.
  • de la Fuente, A. (1997), “The Empirics of Growth and Convergence: A Selective Review,” Journal of Economic Dynamics and Control, 21, 23-73.
  • Eaton, J. (1981), “Fiscal Policy, Inflation and the accumulation of Risky Capital,” Review of Economic Studies, 48, 435-445.
  • Easterly, W. and S. Rebelo (1993), “Fiscal Policy and Economic Growth,” Journal of Monetary Economics, 32, 417-458.
  • Hall, R. and C. Jones (1996), “The Productivity of Nations,” Department of Economics, Stanford University, mimeo.
  • Islam, N. (1995), “Growth Empirics: A Panel Data Approach,” Quarterly Journal of Economics, 110, 1127-1170.
  • Jones, C. (1996), “Convergence Revisited,” Department of Economics, Stanford University, mimeo.
  • Jones, C. (1997), “On the Evolution of World income Distribution,” Department of Economics, Stanford University, mimeo.
  • Lindh, T. and B. Malmberg (1996), “Age Structure Effects and Growth in the OECD, 1950-1990: Further Evidence,” Uppsala University, Department of Economics Working Paper Series, No. 1996:12.
  • Maddison, A. (1991), Dynamic Forces in Capitalist Development. Oxford University Press, Oxford.
  • Mankiw, G., D. Romer and D. Weil (1992), “A Contribution to the Empirics of Economic Growth,” Quarterly Journal of Economics, 107, 107-137.
  • Özötün, E. (1980), Türkiye Gayri Safi Yurt İçi Hasılası (İller İtibariyle) Kaynak ve Yöntemler 1975-1978, Devlet İstatistik Enstitüsü Yayını no. 907.
  • Özötün, E. (1988), Türkiye Gayri Safi Yurt İçi Hasılasının İller İtibariyle Dağılımı 1979-1986, İstanbul Sanayi Odası Yayını no. 1988.8.
  • Persson, J. (1994), “Convergence in Per Capita Income and Migration across the Swedish Counties 1906-1990,” IIES, Stockholm University, mimeo.
  • Quah, D. (1993), “Empirical Cross-section Dynamics in Economic Growth,” European Economic Review, 37, 426-434.
  • Quah, D. (1994), “Empirics for Economic Growth and Convergence,” LSE Economics Department, mimeo.
  • Shioji, E. (1996), “Regional Growth in Japan,” CEPR Discussion Paper no. 1425.
  • Solow, R. (1956), “A Contribution to the Theory of economic Growth,” Quarterly Journal of Economics, 70, 65-94.

Türkiye’de Sanayi ve İller Arasında Yakınsama

Year 2018, Volume: 7 Issue: 3, 1 - 32, 31.12.2018

Abstract

Bu çalışma 1975 ve 1995 arasında Türk illeri arasında yakınsamayı inceliyor. Gelişmiş ülkelerde elde edilen bölgelerin koşulsuz yakınsaması kalıbının tersine bulgular Türkiye’deki iller arasındaki yakınsamanın koşullu olduğunu gösteriyor. Sabit etki modeli kullanarak tahmin edilen durağan dengenin anlamlı olarak farklılaştığı ve durağan denge yerinin temel belirleyicinin başlangıç koşulları olduğu gösteriliyor. Makale aynı zamanda sektörel yakınsama kalıbını da sorgulayarak yakınsamanın kaynaklarını inceliyor. Verimlilik düzeyi ve verimlilik büyümesinin sektörler ve böğeler arasında değiştiği sonucuna ulaşıyor. Sektörel istihdam büyümesi, verimlilik büyümesi ve toplulaştırılmış düzeyde yakınsamaya anlamlı bir katkıda bulunmaktadır.

References

  • Barro, R. (1990), “Government Spending in a Simple Model of Endogenous Growth,” Journal of Political Economy, 98, S103-S125.
  • Barro, R. (1991), “Economic Growth in a Cross Section of Countries,” Quarterly Journal of Economics, 106, 407-443.
  • Barro, R., G. Mankiw and X. Sala-i-Martin (1995), “Capital Mobility in Neoclassical Models of Growth,” American Economic Review, 85, 103-115.
  • Barro, R. and X. Sala-i-Martin (1991), “Convergence Across States and Regions,” Brookings Papers of economic Activity, 1:1991, 107-158.
  • Barro, R. and X. Sala-i-Martin (1992), “Convergence,” Journal of Political Economy, 100, 223-251.
  • Barro, R. and X. Sala-i-Martin (1995), Economic Growth, McGraw-Hill Inc., New York.
  • Bernard, A. and C. Jones (1996), “Productivity and Convergence Across U.S. States and Industries,” in S. Durlauf, J. Helliwell and B. Raj, eds., Long-Run Economic Growth, Physica-Verlag, Heidelberg.
  • Braun, J. (1993), Essays on Economic Growth and Migration, Ph.D. Dissertation, Harvard University.
  • Canova, F. and A. Marcet (1995), “The Poor Stay Poor: Non-convergence Across Countries and Regions,” CEPR Discussion Paper no.1265.
  • Cashin, P. and R. Sahay (1996), “Internal Migration, Center-State Grants, and Economic Growth in the States of India,” IMF Staff Papers, 43, 123-171.
  • Coulombe, S. and F. Lee (1995), “Convergence Across Canadian Provinces, 1961 to 1991,” Canadian Journal of Economics, 28, 886-898.
  • de la Fuente, A. (1996), “On the Sources of Convergence: A Close Look at the Spanish Regions,” CEPR Discussion Paper no. 1543.
  • de la Fuente, A. (1997), “The Empirics of Growth and Convergence: A Selective Review,” Journal of Economic Dynamics and Control, 21, 23-73.
  • Eaton, J. (1981), “Fiscal Policy, Inflation and the accumulation of Risky Capital,” Review of Economic Studies, 48, 435-445.
  • Easterly, W. and S. Rebelo (1993), “Fiscal Policy and Economic Growth,” Journal of Monetary Economics, 32, 417-458.
  • Hall, R. and C. Jones (1996), “The Productivity of Nations,” Department of Economics, Stanford University, mimeo.
  • Islam, N. (1995), “Growth Empirics: A Panel Data Approach,” Quarterly Journal of Economics, 110, 1127-1170.
  • Jones, C. (1996), “Convergence Revisited,” Department of Economics, Stanford University, mimeo.
  • Jones, C. (1997), “On the Evolution of World income Distribution,” Department of Economics, Stanford University, mimeo.
  • Lindh, T. and B. Malmberg (1996), “Age Structure Effects and Growth in the OECD, 1950-1990: Further Evidence,” Uppsala University, Department of Economics Working Paper Series, No. 1996:12.
  • Maddison, A. (1991), Dynamic Forces in Capitalist Development. Oxford University Press, Oxford.
  • Mankiw, G., D. Romer and D. Weil (1992), “A Contribution to the Empirics of Economic Growth,” Quarterly Journal of Economics, 107, 107-137.
  • Özötün, E. (1980), Türkiye Gayri Safi Yurt İçi Hasılası (İller İtibariyle) Kaynak ve Yöntemler 1975-1978, Devlet İstatistik Enstitüsü Yayını no. 907.
  • Özötün, E. (1988), Türkiye Gayri Safi Yurt İçi Hasılasının İller İtibariyle Dağılımı 1979-1986, İstanbul Sanayi Odası Yayını no. 1988.8.
  • Persson, J. (1994), “Convergence in Per Capita Income and Migration across the Swedish Counties 1906-1990,” IIES, Stockholm University, mimeo.
  • Quah, D. (1993), “Empirical Cross-section Dynamics in Economic Growth,” European Economic Review, 37, 426-434.
  • Quah, D. (1994), “Empirics for Economic Growth and Convergence,” LSE Economics Department, mimeo.
  • Shioji, E. (1996), “Regional Growth in Japan,” CEPR Discussion Paper no. 1425.
  • Solow, R. (1956), “A Contribution to the Theory of economic Growth,” Quarterly Journal of Economics, 70, 65-94.
There are 29 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Alpay Filiztekin This is me 0000-0002-4475-5603

Publication Date December 31, 2018
Published in Issue Year 2018 Volume: 7 Issue: 3

Cite

APA Filiztekin, A. (2018). Convergence Across Industries and Provinces in Turkey. Ekonomi-Tek, 7(3), 1-32.