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REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA

Year 2015, Volume: 37 Issue: 1, 125 - 147, 07.09.2015
https://doi.org/10.14780/iibd.83419

Abstract

This paper examines the path of the regional inequalities in Turkey for the post 2001 period. After the financial turmoil and the sharp downturn in the economy in 2001, Turkey managed to sustain 3.6 % real per capita GDP growth between 2002 and 2014. Even the increase in the GDP is remarkable the way that the growth is distrib- uted at the regional scale is questionable. Originating from the concern on the ability of Turkish regions to equally benefit from the economic growth, regional inequalities are evaluated via regional wage income differences at NUTS II disaggregation for the 2003-2008 period. Even initial set of analysis point out a fall in the regional wage income gaps, a careful interpretation indicate the persistence of the heterogeneous pattern coming from the pre-2001 period. Analysis covering all industries indicates that, out of the 26 sub-regions, 5 of the NUTS II regions in the eastern Turkey move to a group of regions with lower wage income during the 2003-2008 period. Meanwhile neither the high wage region clusters nor the outlier regions acting as geographic transitions do realize a significant movement within the distribution. Results are much or less consistent for manufacturing production as well. In general findings underline a period of ongoing polarization in the wage income at NUTS II level during the post 2001 period in Turkey. Additionally results also highlight the non-randomness of this polarization even at NUTS II disaggregation which once more points out that spatial dependence and spatial heterogeneity works together in Turkey.

References

  • ANSELIN Luc, “Thirty Years of Spatial Econometrics”, Papers in Regional Science, Vol.89, 2010, pp.3-25.
  • ANSELIN Luc, “Local Indicators of Spatial Association-LISA”, Geographical Analysis, Vol. 27, No.2, 1995, pp. 93-115.
  • BADINGER Harald, MÜLLER Werner and TONDL Gabriele, “Regional Convergence in the European Union, 1985-1999: A Spatial Dynamic Panel Analysis”, Regional Studies, Vol.38, No.3, 2004, pp.241-253.
  • BARRO Robert J. and SALA-I MARTIN Xavier, “Convergence”, Journal of Political Economy, Vol.100, No.2, 1992, pp.223-251.
  • BİLGEL Fırat and KARAHASAN Burhan Can, “The Economic Costs of Separatists Terrorism in Turkey”, Journal of Conflict Resolution, DOI: 10.1177/0022002715576572, 2015.
  • BOURGUIGNON Francois, “Decomposable Income Inequality Measures”, Econometrica, Vol.47,No. 4, 1979, 901-920.
  • COMBES Pierre-Philippe, MAYER Thiery, and THISSE Jacques-François, Economic Geography, The Integration of Regions and Nations, Princeton University Press, Princeton, 2008.
  • CUERASMA Jesus Crespo, RITZBERGER-GRUNWALD Doris and SILGONER Maria Antoinette, “Growth, convergence and the EU membership”, Applied Economics, Vol.40, No. 5, 2008, pp.643-656.
  • DOĞRUEL Fatma, “Türkiye’de Bölgesel Politikalar”, Değişen Türkiye Dönüşen Mekan,¸Ed. A. Eraydın, 2006, Dost Kitapevi Yayınları, pp. 164-195.
  • DOĞRUEL Fatma, Bölgesel Kalkınma ve Kalkınma Ajansları, TÜRKONFED Yayınları, 2012.
  • DOĞRUEL Fatma and DOĞRUEL Suut, “Türkiye’de Bölgesel Gelir Farklılıkları ve Büyüme”, İktisat Üzerine Yazılar I Küresel Düzen: Birikim, Devlet ve Sı- nıflar Korkut Boratav’a Armağan, Eds. A.Köse, F.Şenses, E.Yeldan, 2003.
  • ELVEREN Adem Yavuz, “Wage Inequality in Turkey: Decomposition by Statistical Regions, 1980-2001”, Review of Urban & Regional Development Studies, Vol.22, 2010, pp.55-72.
  • FİLİZTEKİN Alpay, “Regional Unemployment in Turkey”, Papers in Regional Science, Vol.88, No.4, 2009, pp.863-878.
  • FOTHERINGHAM A. Stewart, BRUNSDON Chris and CHARLTON Martin, Geographically Weighted Regression: The Analysis of Spatially Varying Relationships, Wiley, 2002.
  • GEZİCİ Ferhan and HEWINGS Geoffrey J.D., “Regional Convergence and Economic Performance of Peripheral Areas in Turkey”, Review of Urban & Regional Development Studies, Vol.16, No.2, 2004, pp.113-132. 147 KARAHASAN Burhan Can and UYAR Emrah, “Spatial Distribution of Education and Regional Inequalities in Turkey”, Munich Personal RePEc Archive, No.30130, 2009.
  • KARAHASAN Burhan Can, “Türkiye’de Bölgesel Eşitsizlikler: Mekansal Bağlar ve Yerel İstikrarsızlıklar”, Son On Beş Yılda Türkiye Ekonomisi, Eds. Karahasan B.C., Bilgel F. and Soydan A., İstanbul , 2014, Okan Üniversitesi Yayınları, pp.117-143.
  • KARAHASAN Burhan Can, “Dynamics of Regional New Firm Formation in Turkey”, Review of Urban & Regional Development Studies, Vol. 27, No.1, 2015, pp. 18-39.
  • LOPEZ-RODRIGUEZ Jesus, “Regional Convergence in the European Union: Results from a Panel Data Model”, Economics Bulletin, Vol. 18, No. 2, 2008, pp. 1-7. MONASTIRIOTIS Vassilis, “Examining the consistency of spatial association patterns across socio-economic indicators: an application to the Greek regions”, Empirical Economics, Vol. 37, 2009, pp.25-49.
  • NARRO Maria C. Cuerva, “Productivity convergence in the European regional agricultures. Determinants of its evolution”, European Association of Agricultural Economists, 113th Seminar, Chania, Crete, Greece, 2009.
  • ÖZÖTÜN Erdoğan, İller İtibariyle Gayri Safi Yurtiçi Hasılası-Kaynak ve yöntemler, 1975-1978, Devlet İstatistik Enstitüsü Yayın No.907, İstanbul, 1980.
  • ÖZÖTÜN Erdoğan, Türkiye Gayri Safi Yurtiçi Hasılasının İller İtibariyle Dağı- lımı, 1979-1986, İstanbul Ticaret Odası Araştırma Bölümü Yayın No. 1998/8, İstanbul, 1988.
  • ŞENSES Fikret, “Economic Crisis as an Instigator of Distributional Conflict: The Turkish Case in 2001”, The Turkish Economy in Crisis, Eds. Öniş Z. and Rubin B., Routledge, 2003, pp. 92-120.
  • TEKELİ İlhan, “UNDP İnasanca Gelişme Raporu: Bölgesel Kalkınma Politikaları Üzerindeki Etkileri”, İnsanca Gelişme Birinci Türkiye Konferansı (Rapor), T.C. Hükümeti ve Milletler Kalkınma Programı İşbirliği (UNDP), 1992, pp. 50-67.
  • WEEKS Melvyn and YAO J. Yudong, “Provincial Conditional Income Convergence in China, 1953-1997:A Panel Data Approach”, Econometric Reviews, Vol.22, No. 1, 2003, pp.59-77.
  • YEŞİLYURT Filiz and ELHORST J. Paul, “A Regional Analysis of Inflation Dynamics in Turkey”, The Annals of Regional Science, Vol.52, 2014, 1-17.
  • YILDIRIM Julide and ÖCAL Nadir, “Income Inequality and Economic Convergence in Turkey”, Transition Studies Review, Vol.13, No.3, 2006, pp.559-568.

REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA

Year 2015, Volume: 37 Issue: 1, 125 - 147, 07.09.2015
https://doi.org/10.14780/iibd.83419

Abstract

This paper examines the path of the regional inequalities in Turkey for the post 2001 period. After the financial turmoil and the sharp downturn in the economy in 2001, Turkey managed to sustain 3.6 % real per capita GDP growth between 2002 and 2014. Even the increase in the GDP is remarkable the way that the growth is distributed at the regional scale is questionable. Originating from the concern on the ability of Turkish regions to equally benefit from the economic growth, regional inequalities are evaluated via regional wage income differences at NUTS II disaggregation for the 2003-2008 period. Even initial set of analysis point out a fall in the regional wage income gaps, a careful interpretation indicate the persistence of the heterogeneous pattern coming from the pre-2001 period. Analysis covering all industries indicates that, out of the 26 sub-regions, 5 of the NUTS II regions in the eastern Turkey move to a group of regions with lower wage income during the 2003-2008 period. Meanwhile neither the high wage region clusters nor the outlier regions acting as geographic transitions do realize a significant movement within the distribution. Results are much or less consistent for manufacturing production as well. In general findings underline a period of ongoing polarization in the wage income at NUTS II level during the post 2001 period in Turkey. Additionally results also highlight the non-randomness of this polarization even at NUTS II disaggregation which once more points out that spatial dependence and spatial heterogeneity works together in Turkey

References

  • ANSELIN Luc, “Thirty Years of Spatial Econometrics”, Papers in Regional Science, Vol.89, 2010, pp.3-25.
  • ANSELIN Luc, “Local Indicators of Spatial Association-LISA”, Geographical Analysis, Vol. 27, No.2, 1995, pp. 93-115.
  • BADINGER Harald, MÜLLER Werner and TONDL Gabriele, “Regional Convergence in the European Union, 1985-1999: A Spatial Dynamic Panel Analysis”, Regional Studies, Vol.38, No.3, 2004, pp.241-253.
  • BARRO Robert J. and SALA-I MARTIN Xavier, “Convergence”, Journal of Political Economy, Vol.100, No.2, 1992, pp.223-251.
  • BİLGEL Fırat and KARAHASAN Burhan Can, “The Economic Costs of Separatists Terrorism in Turkey”, Journal of Conflict Resolution, DOI: 10.1177/0022002715576572, 2015.
  • BOURGUIGNON Francois, “Decomposable Income Inequality Measures”, Econometrica, Vol.47,No. 4, 1979, 901-920.
  • COMBES Pierre-Philippe, MAYER Thiery, and THISSE Jacques-François, Economic Geography, The Integration of Regions and Nations, Princeton University Press, Princeton, 2008.
  • CUERASMA Jesus Crespo, RITZBERGER-GRUNWALD Doris and SILGONER Maria Antoinette, “Growth, convergence and the EU membership”, Applied Economics, Vol.40, No. 5, 2008, pp.643-656.
  • DOĞRUEL Fatma, “Türkiye’de Bölgesel Politikalar”, Değişen Türkiye Dönüşen Mekan,¸Ed. A. Eraydın, 2006, Dost Kitapevi Yayınları, pp. 164-195.
  • DOĞRUEL Fatma, Bölgesel Kalkınma ve Kalkınma Ajansları, TÜRKONFED Yayınları, 2012.
  • DOĞRUEL Fatma and DOĞRUEL Suut, “Türkiye’de Bölgesel Gelir Farklılıkları ve Büyüme”, İktisat Üzerine Yazılar I Küresel Düzen: Birikim, Devlet ve Sı- nıflar Korkut Boratav’a Armağan, Eds. A.Köse, F.Şenses, E.Yeldan, 2003.
  • ELVEREN Adem Yavuz, “Wage Inequality in Turkey: Decomposition by Statistical Regions, 1980-2001”, Review of Urban & Regional Development Studies, Vol.22, 2010, pp.55-72.
  • FİLİZTEKİN Alpay, “Regional Unemployment in Turkey”, Papers in Regional Science, Vol.88, No.4, 2009, pp.863-878.
  • FOTHERINGHAM A. Stewart, BRUNSDON Chris and CHARLTON Martin, Geographically Weighted Regression: The Analysis of Spatially Varying Relationships, Wiley, 2002.
  • GEZİCİ Ferhan and HEWINGS Geoffrey J.D., “Regional Convergence and Economic Performance of Peripheral Areas in Turkey”, Review of Urban & Regional Development Studies, Vol.16, No.2, 2004, pp.113-132. 147 KARAHASAN Burhan Can and UYAR Emrah, “Spatial Distribution of Education and Regional Inequalities in Turkey”, Munich Personal RePEc Archive, No.30130, 2009.
  • KARAHASAN Burhan Can, “Türkiye’de Bölgesel Eşitsizlikler: Mekansal Bağlar ve Yerel İstikrarsızlıklar”, Son On Beş Yılda Türkiye Ekonomisi, Eds. Karahasan B.C., Bilgel F. and Soydan A., İstanbul , 2014, Okan Üniversitesi Yayınları, pp.117-143.
  • KARAHASAN Burhan Can, “Dynamics of Regional New Firm Formation in Turkey”, Review of Urban & Regional Development Studies, Vol. 27, No.1, 2015, pp. 18-39.
  • LOPEZ-RODRIGUEZ Jesus, “Regional Convergence in the European Union: Results from a Panel Data Model”, Economics Bulletin, Vol. 18, No. 2, 2008, pp. 1-7. MONASTIRIOTIS Vassilis, “Examining the consistency of spatial association patterns across socio-economic indicators: an application to the Greek regions”, Empirical Economics, Vol. 37, 2009, pp.25-49.
  • NARRO Maria C. Cuerva, “Productivity convergence in the European regional agricultures. Determinants of its evolution”, European Association of Agricultural Economists, 113th Seminar, Chania, Crete, Greece, 2009.
  • ÖZÖTÜN Erdoğan, İller İtibariyle Gayri Safi Yurtiçi Hasılası-Kaynak ve yöntemler, 1975-1978, Devlet İstatistik Enstitüsü Yayın No.907, İstanbul, 1980.
  • ÖZÖTÜN Erdoğan, Türkiye Gayri Safi Yurtiçi Hasılasının İller İtibariyle Dağı- lımı, 1979-1986, İstanbul Ticaret Odası Araştırma Bölümü Yayın No. 1998/8, İstanbul, 1988.
  • ŞENSES Fikret, “Economic Crisis as an Instigator of Distributional Conflict: The Turkish Case in 2001”, The Turkish Economy in Crisis, Eds. Öniş Z. and Rubin B., Routledge, 2003, pp. 92-120.
  • TEKELİ İlhan, “UNDP İnasanca Gelişme Raporu: Bölgesel Kalkınma Politikaları Üzerindeki Etkileri”, İnsanca Gelişme Birinci Türkiye Konferansı (Rapor), T.C. Hükümeti ve Milletler Kalkınma Programı İşbirliği (UNDP), 1992, pp. 50-67.
  • WEEKS Melvyn and YAO J. Yudong, “Provincial Conditional Income Convergence in China, 1953-1997:A Panel Data Approach”, Econometric Reviews, Vol.22, No. 1, 2003, pp.59-77.
  • YEŞİLYURT Filiz and ELHORST J. Paul, “A Regional Analysis of Inflation Dynamics in Turkey”, The Annals of Regional Science, Vol.52, 2014, 1-17.
  • YILDIRIM Julide and ÖCAL Nadir, “Income Inequality and Economic Convergence in Turkey”, Transition Studies Review, Vol.13, No.3, 2006, pp.559-568.
There are 26 citations in total.

Details

Primary Language English
Journal Section Makaleler
Authors

Burhan Karahasan

Publication Date September 7, 2015
Submission Date September 7, 2015
Published in Issue Year 2015 Volume: 37 Issue: 1

Cite

APA Karahasan, B. (2015). REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 37(1), 125-147. https://doi.org/10.14780/iibd.83419
AMA Karahasan B. REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. September 2015;37(1):125-147. doi:10.14780/iibd.83419
Chicago Karahasan, Burhan. “REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA”. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi 37, no. 1 (September 2015): 125-47. https://doi.org/10.14780/iibd.83419.
EndNote Karahasan B (September 1, 2015) REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 37 1 125–147.
IEEE B. Karahasan, “REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol. 37, no. 1, pp. 125–147, 2015, doi: 10.14780/iibd.83419.
ISNAD Karahasan, Burhan. “REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA”. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi 37/1 (September 2015), 125-147. https://doi.org/10.14780/iibd.83419.
JAMA Karahasan B. REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2015;37:125–147.
MLA Karahasan, Burhan. “REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA”. Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi, vol. 37, no. 1, 2015, pp. 125-47, doi:10.14780/iibd.83419.
Vancouver Karahasan B. REGIONAL INEQUALITIES IN TURKEY: POST 2001 ERA. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2015;37(1):125-47.

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