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National and Regional Convergence Outcomes of The Global Financial Crisis (2008): The Case of Türkiye and the EU

Year 2025, Volume: 16 Issue: 45, 227 - 246, 28.02.2025
https://doi.org/10.21076/vizyoner.1457502

Abstract

According to the convergence hypothesis, units (country, region, sector, etc.) with relatively lower incomes would converge to those with higher incomes. Reducing regional development disparities has been a key priority of European integration. Before full membership, candidate countries are expected to converge as much as possible to the EU average in terms of certain economic indicators. Financial crisis affects the differences in the level of income between regions and countries. The global crisis, which started in the USA and spread to the EU and the world as of 2007, was effective on national and regional scales; produced results worth discussing in the context of convergence. In the study, the convergence relationship between Türkiye and the EU member countries and their selected regions during the global financial crisis is investigated to see whether the global financial crisis is an opportunity for convergence in the relatively low-income level-2 regions. 81 regions of the EU and Türkiye for the period of 2004 - 2017 is used. Findings indicate that, Türkiye converged to the EU during the crisis. 26 regions converged positively and 18 negatively; 21 diverged positively and 11 negatively; there was no significant change in the relative position of 5 regions.

References

  • Allen, F., & Gale, D. M. (2007). An introduction to financial crises. SSRN Electronic Journal. 10-15
  • Barro, R. J., & Sala-i-Martin, X. (1990). Economic growth and convergence across the United States, NBER Working Paper, 3419.
  • Barro, R. J., & Sala-i-Martin, X. (1991). Convergence across states and regions, Brooking Papers on Economic Activities, 1, 107-182.
  • Baumol, W. J. (1986). Productivity growth, convergence and welfare: What the long-run data show?. The American Economic Review, 76(5), 1072–1085.
  • Bayraktutan, Y. (2000). Küreselleşme kriz ve IMF. Liberal Düşünce Dergisi, 5, 14-18.
  • Bernard, A. B., & Durlauf, S. N. (1996). Interpreting tests of the convergence hypothesis. Journal of Econometrics, 71(1-2), 161-173.
  • Claessens, S., & Ayhan Köse (2013). Financial crises: Explanations, types, and ımplications, IMF Working Paper, WP(13): 28.
  • Coulombe, S. (2000). New evidence of convergence across Canadian provinces: The role of urbanization, Regional Studies, 34, 713–725.
  • Devarajan, S., Rogers, F. H. & Squire, L. (2001). World Bank Economists Forum, Volume 1, The World Bank, (p. 6-11.)
  • Diler, Ö. (2021). Küresel Finansal Krizin (2008) Ulusal ve bölgesel ölçekte Türkiye-AB yakınsama sonuçları [Ph.D. Dissertation]. Kocaeli.
  • EURSTAT. (2018). Retrieved September 14, 2018 from http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1& language=en&pcode=tec00115/
  • Folfas, P. (2017). Income absolute beta-convergence of NUTS 3 level regions in new EU member states before and during a crisis. Folia Oeconomica Stetinensia, 31, 151-162.
  • Galor, O. (1996). Convergence? Inference from theoretical models, The Economic Journal, 106, 1056–1069.
  • Głodowska, A. (2015). Beta and sigma convergence within the European Union countries and regions. Proceedings of the 6th Global Conference on Management in Recovering Markets, (p. 233-246), University of Maribor.
  • Gündem, F. (2017). Is there ıncome convergence between NUTS 2 territories in Türkiye? A spatial statistical and spatial econometrics contribution, Sosyoekonomi, 25(34), 145-160.
  • Hevner, L. B. (2009). Adding a real estate component to your portfolio – considering a truly unique asset, in the perfect portfolio, a revolutionary approach to personal ınvesting (p. 35-157). John Wiley & Sons,
  • Jaffee, D. (2008). The U.S. subprime mortgage crisis: ıssues raised and lessons learned, The World Bank Commission on Growth and Development Working Paper, 28.
  • Kibritçioğlu, A. (2001). Türkiye’de ekonomik krizler ve hükümetler, 1969-2001. Yeni Türkiye Dergisi, 2(41), 174-183.
  • Mishkin, F. S. (1996). Understanding financial crises: a developing country perspective, Annual World Bank Conference on Development Economics, The World Bank, (p. 29-62).
  • Monfort, P. (2008). Convergence of EU regions measures and evolution, European Union Regional Policy Working Papaers, 01/2008.
  • Gömleksiz, M., Şahbaz, A., & Mercan, B. (2017). Regional economic convergence in Turkey: Does the government really matter for?. Economies, 5(3), 1-16.
  • Nahar, S., & Inder, B. (2002). Testing convergence in economic growth for OECD countries. Applied Economics, 34(16), 2011-2022.
  • Nevima, J, & Melecky, L. (2011). Regional competitiveness evaluation of visegrad four countries through econometric panel data model, Liberec Economic Forum Conference, (p. 348-361).
  • Pinto, B., Gurvich, E., & Ulatov, S. (2005). Lessons from the Russian crisis of 1998 and recovery. In Managing economic volatility and crises: A practitioner’s guide (p. 406-438). Cambridge University Press.
  • Quah Danny, T. (1996). Twin peaks: Growth and convergence in models of distribution dynamics. The Economic Journal, 106, 1045-1055.
  • Rassekh, F., Panik, M. J., & Kolluri, B. R. (2001). A test of the convergence hypothesis: The OECD experience, 1950–1990. International Review of Economics & Finance, 10(2), 147-157.
  • Rassekh, Farhad (1998). The convergence hypothesis: history, theory, and evidence, Open Economies Review, 9, 85–105.
  • Sala-I Martin, X. (1994). Regional cohesion: evidence and theories of regional growth and convergence, Center Discussion Paper, 716.
  • Sapir, Jacques (2008). Global finance in crisis. Real-World Economics Review, 46, 82-101.
  • Sitikantha, P. (2009). The global financial stability architecture fails again: Subprime crisis lessons for policymakers. Asian-Pacific Economic Literature, 23(1), 21-47.
  • Solow, R. M. (1956). A Contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94.
  • Turgut, A. (2007). Türleri, nedenleri ve göstergeleriyle finansal krizler. TÜHİS İş Hukuku ve İktisat Dergisi, 20(4-5), 35-56.
  • Turkish Ministry of Treasury. (2018). Retrieved September 15, 2018 from https://www.hazine.gov.tr/tr-TR/Istatistik-Sunum-Sayfasi?mid=59&cid=12 /
  • Turkish Statistical Institution. (2018). Retrieved September 18, 2018 from http://www.tuik.gov.tr/UstMenu.do?metod =temelist /
  • Yıldırım, K., Karaman, D., & Taşdemir, M. (2012). Makro ekonomi. Seçkin Yayınevi.

Küresel Finansal Krizin Ulusal ve Bölgesel Yakınlanma Sonuçları (2008): Türkiye ve AB Örneği

Year 2025, Volume: 16 Issue: 45, 227 - 246, 28.02.2025
https://doi.org/10.21076/vizyoner.1457502

Abstract

Yakınsama hipotezine göre, incelenen birimlerden (ülke, bölge, il, sektör vb.) göreli olarak daha düşük gelire sahip olanlar, zamanla daha yüksek bir büyüme performansıyla yüksek gelirli olanlara yakınsayacaktır. Bölgesel gelişme farklarının azaltılması, baştan itibaren Avrupa bütünleşmesinin temel önceliklerinden biri olmuştur ve tam üyelik öncesi aday ülkelerden de belirli iktisadi göstergeler bakımından AB ortalamasına olabildiğince yakınsamaları beklenmektedir. Finansal kriz, ana iktisadi değişkenlerde yüksek oranlı bozulmalar ile bölgeler ve ülkeler arasında gelişme düzeyi farklılıklarına sebep olmaktadır. 2007’den itibaren ABD’de başlayıp AB’ye yayılan küresel kriz, ulusal ve bölgesel ölçekte etkili olmuş; yakınsama bağlamında tartışmaya değer sonuçlar üretmiştir. Bu çalışmada, aday ülke statüsünde olan Türkiye’nin, AB üyesi ülkeler ile küresel finansal kriz sonrası yakınsama ilişkisi araştırılmış; küresel finansal krizin, görece düşük gelirli düzey-2 bölgeleri özelinde yakınsama bakımından bir fırsat olup olmadığı, makroekonomik göstergeler ışığında, 2004 - 2017 dönemi için analiz edilmiştir. Türkiye’nin kriz sürecinde AB’ye yakınsadığı; AB ve Türkiye’nin örneklemde yer alan 81 bölgesinden 26 bölgenin pozitif ve 18 bölgenin negatif yakınsadığı; 21 bölgenin pozitif ve 11 bölgenin negatif ıraksadığı; 5 bölgenin ise göreli konumunda kayda değer değişim olmadığı saptanmıştır.

References

  • Allen, F., & Gale, D. M. (2007). An introduction to financial crises. SSRN Electronic Journal. 10-15
  • Barro, R. J., & Sala-i-Martin, X. (1990). Economic growth and convergence across the United States, NBER Working Paper, 3419.
  • Barro, R. J., & Sala-i-Martin, X. (1991). Convergence across states and regions, Brooking Papers on Economic Activities, 1, 107-182.
  • Baumol, W. J. (1986). Productivity growth, convergence and welfare: What the long-run data show?. The American Economic Review, 76(5), 1072–1085.
  • Bayraktutan, Y. (2000). Küreselleşme kriz ve IMF. Liberal Düşünce Dergisi, 5, 14-18.
  • Bernard, A. B., & Durlauf, S. N. (1996). Interpreting tests of the convergence hypothesis. Journal of Econometrics, 71(1-2), 161-173.
  • Claessens, S., & Ayhan Köse (2013). Financial crises: Explanations, types, and ımplications, IMF Working Paper, WP(13): 28.
  • Coulombe, S. (2000). New evidence of convergence across Canadian provinces: The role of urbanization, Regional Studies, 34, 713–725.
  • Devarajan, S., Rogers, F. H. & Squire, L. (2001). World Bank Economists Forum, Volume 1, The World Bank, (p. 6-11.)
  • Diler, Ö. (2021). Küresel Finansal Krizin (2008) Ulusal ve bölgesel ölçekte Türkiye-AB yakınsama sonuçları [Ph.D. Dissertation]. Kocaeli.
  • EURSTAT. (2018). Retrieved September 14, 2018 from http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1& language=en&pcode=tec00115/
  • Folfas, P. (2017). Income absolute beta-convergence of NUTS 3 level regions in new EU member states before and during a crisis. Folia Oeconomica Stetinensia, 31, 151-162.
  • Galor, O. (1996). Convergence? Inference from theoretical models, The Economic Journal, 106, 1056–1069.
  • Głodowska, A. (2015). Beta and sigma convergence within the European Union countries and regions. Proceedings of the 6th Global Conference on Management in Recovering Markets, (p. 233-246), University of Maribor.
  • Gündem, F. (2017). Is there ıncome convergence between NUTS 2 territories in Türkiye? A spatial statistical and spatial econometrics contribution, Sosyoekonomi, 25(34), 145-160.
  • Hevner, L. B. (2009). Adding a real estate component to your portfolio – considering a truly unique asset, in the perfect portfolio, a revolutionary approach to personal ınvesting (p. 35-157). John Wiley & Sons,
  • Jaffee, D. (2008). The U.S. subprime mortgage crisis: ıssues raised and lessons learned, The World Bank Commission on Growth and Development Working Paper, 28.
  • Kibritçioğlu, A. (2001). Türkiye’de ekonomik krizler ve hükümetler, 1969-2001. Yeni Türkiye Dergisi, 2(41), 174-183.
  • Mishkin, F. S. (1996). Understanding financial crises: a developing country perspective, Annual World Bank Conference on Development Economics, The World Bank, (p. 29-62).
  • Monfort, P. (2008). Convergence of EU regions measures and evolution, European Union Regional Policy Working Papaers, 01/2008.
  • Gömleksiz, M., Şahbaz, A., & Mercan, B. (2017). Regional economic convergence in Turkey: Does the government really matter for?. Economies, 5(3), 1-16.
  • Nahar, S., & Inder, B. (2002). Testing convergence in economic growth for OECD countries. Applied Economics, 34(16), 2011-2022.
  • Nevima, J, & Melecky, L. (2011). Regional competitiveness evaluation of visegrad four countries through econometric panel data model, Liberec Economic Forum Conference, (p. 348-361).
  • Pinto, B., Gurvich, E., & Ulatov, S. (2005). Lessons from the Russian crisis of 1998 and recovery. In Managing economic volatility and crises: A practitioner’s guide (p. 406-438). Cambridge University Press.
  • Quah Danny, T. (1996). Twin peaks: Growth and convergence in models of distribution dynamics. The Economic Journal, 106, 1045-1055.
  • Rassekh, F., Panik, M. J., & Kolluri, B. R. (2001). A test of the convergence hypothesis: The OECD experience, 1950–1990. International Review of Economics & Finance, 10(2), 147-157.
  • Rassekh, Farhad (1998). The convergence hypothesis: history, theory, and evidence, Open Economies Review, 9, 85–105.
  • Sala-I Martin, X. (1994). Regional cohesion: evidence and theories of regional growth and convergence, Center Discussion Paper, 716.
  • Sapir, Jacques (2008). Global finance in crisis. Real-World Economics Review, 46, 82-101.
  • Sitikantha, P. (2009). The global financial stability architecture fails again: Subprime crisis lessons for policymakers. Asian-Pacific Economic Literature, 23(1), 21-47.
  • Solow, R. M. (1956). A Contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94.
  • Turgut, A. (2007). Türleri, nedenleri ve göstergeleriyle finansal krizler. TÜHİS İş Hukuku ve İktisat Dergisi, 20(4-5), 35-56.
  • Turkish Ministry of Treasury. (2018). Retrieved September 15, 2018 from https://www.hazine.gov.tr/tr-TR/Istatistik-Sunum-Sayfasi?mid=59&cid=12 /
  • Turkish Statistical Institution. (2018). Retrieved September 18, 2018 from http://www.tuik.gov.tr/UstMenu.do?metod =temelist /
  • Yıldırım, K., Karaman, D., & Taşdemir, M. (2012). Makro ekonomi. Seçkin Yayınevi.
There are 35 citations in total.

Details

Primary Language English
Subjects Growth, Development Economics - Macro, Macroeconomics (Other)
Journal Section Research Articles
Authors

Ömer Diler 0000-0002-4429-3162

Yusuf Bayraktutan 0000-0002-4453-3701

Publication Date February 28, 2025
Submission Date March 22, 2024
Acceptance Date December 27, 2024
Published in Issue Year 2025 Volume: 16 Issue: 45

Cite

APA Diler, Ö., & Bayraktutan, Y. (2025). National and Regional Convergence Outcomes of The Global Financial Crisis (2008): The Case of Türkiye and the EU. Süleyman Demirel Üniversitesi Vizyoner Dergisi, 16(45), 227-246. https://doi.org/10.21076/vizyoner.1457502

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