Agglomeration and Growth in Turkey, 1980-1995
Öz
This paper examines the extent at which dynamic scale externalities affected employment growth in Turkey during 1980-1995 period, using panel data on manufacturing industry. Localization economies are found to have negative effect on employment growth in the short run but there is evidence in favor of specialization once additional lags are allowed for. The paper finds no evidence in favor of diversity in major industries but for high-tech industry. The results also indicate positive effects of backward- and forward linkages. Moreover, highly dense areas are found to attract firms at the beginning but over time congestion drives firms out of such centers. Finally, the paper reports that the effect of competition is differential depending on the sector. In industries where competition for inputs is crucial, such as heavy industries, it reduces employment growth but in industries that have differentiated products and continuous innovations are important, such as high-tech industries, the effect of competition on growth is positive.
Anahtar Kelimeler
Agglomeration, industry location, scale externalities, Turkey
Kaynakça
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