Regional Economic Convergence and Spatial Spillovers in Turkey

Year 2019, Volume: 11 Issue: 1, 1 - 23, 05.04.2019

Tayyar Dogan , Ahmet Kındap

https://doi.org/10.33818/ier.448603

Cited By: 6

Abstract

Using sigma and beta convergence methods, this study
tests economic convergence in Turkish NUTS-2 regions between 2004-2011. The
findings of sigma convergence show that, in accordance with the literature, the
interregional income gap decreases during economic recession periods and
increases during economic expansion periods. The beta convergence results
obtained by the cross-sectional and panel estimations indicate the existence of
absolute convergence. In addition, spatial data analysis and beta convergence
analysis provide strong evidence for the existence of spatial autocorrelation
in regional income distribution and show that the spatial dimension should be
taken into account in convergence analyses.

Keywords

Regional disparity, Convergence, Spatial autocorrelation, Spatial econometrics, Spatial spillover

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