Regional Economic Convergence and Spatial Spillovers in Turkey

Year 2019, , 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

References

• ABRAMOVITZ, M. (1986) Catching Up, Forging Ahead, and Falling Behind, Journal of Economic History 46(2): 385-406.
• ALDAN, A., GAYGISIZ, E. (2006) Convergence Across Provinces of Turkey: A Spatial. Analysis, Research and Monetary Policy Department Working Paper No. 06/09, Central Bank of the Republic of Turkey, Ankara.ANSELIN, L., REY, S. J. (2014) Modern Spatial Econometrics in Practice: A Guide to GeoDa, GeoDaSpace and PySAL. GeoDa Press, Chicago.
• ANSELIN, L., BERA, A. K., FLORAX, R., YOON, M. J. (1996) Simple Diagnostic Tests for Spatial Dependence, Regional Science and Urban Economics 26(1):77-104.
• ANSELIN, L., SYABRI, I., SMIRNOV, O. (2002) Visualizing Multivariate Spatial Correlation with Dynamically Linked Windows. In Luc Anselin and Sergio Rey (ed.), New Tools for Spatial Data Analysis: Proceedings of the Specialist Meeting, Santa Barbara, CA: Center for Spatially Integrated Social Science, University of California, CD-ROM.
• ANSELIN, L. (1988) Spatial Econometrics: Methods and Models, Kluwer Academic Publishers, Dordrecht.
• ANSELIN, L. (1992) SpaceStat, a Software Program for Analysis of Spatial Data, University of California, National Center for Geographic Information and Analysis, Santa Barbara.
• ANSELIN, L. (1995) Local Indicators of Spatial Association, Geographical Analysis 27(2): 93-115.
• ANSELIN, L. (2001) Rao’s Score Test in Spatial Econometrics, Journal of Statistical Planning and Inference, 97:113–139.
• ATALIK, G. (1990) Some Effects of Regional Differentiation on Integration in the European Community, Papers in Regional Science Association 69: 11-19.
• ATKINSON, A.B. (1970) On the Measurement of Inequality, Journal of Economic Theory 2(3): 244–263.
• ATKINSON, A.B. (1975) On the Measurement of Inequality. Oxford University Press, Oxford.
• ATKINSON, A.B. (1983) The Economics of Inequality, Clarendon Press (2 ed.), Oxford.BANERJEE, A., KURI, P.K. (2015) Development Disparities in India: An Enquiry into Convergence, Springer India, New Delhi.
• BARRO, R.J., SALA-I-MARTIN, X. (1990) Economic Growth and Convergence across the United States, National Bureau of Economic Research Working Paper no. 3419.
• BARRO, R.J., SALA-I-MARTIN, X. (1991) Convergence Across States and Regions, Brookings Papers on Economic Activity 22(1):107–82
• BARRO, R.J., SALA-I-MARTIN, X. (1992). “Convergence,” Journal of Political Economy 100 (2): 223–251.
• BARRO, R.J., SALA-I-MARTIN, X. (1995) Economic Growth. New York: McGraw-Hill.
• BARRO, R. (1991) Economic Growth in A Cross Section of Countries, Quarterly Journal of Economics 106: 407-443.
• BAUMOL, W. (1986) Productivity Growth, Convergence and Welfare: What Do the Long Run Data Show?, American Economic Review 76(5): 1072-1085.
• BERBER, M., YAMAK, R., ARTAN, S. (2000) Türkiye’de Yakınlaşma Hipotezinin Bölgeler Bazında Geçerliliği Üzerine Ampirik Bir Çalışma: 1975-1997, 9. Ulusal Bolge Bilimi Kongresi-Bildiriler Kitabı, 51-59, Trabzon.
• CASHIN, P. (1995) Economic Growth and Convergence Across the Seven Colonies of Australasia: 1861–1991, The Economic Record 71(213): 132–144.
• CELBIS, M.G., CROMBRUGGHE, D. (2014) Can internet infrastructure help reduce regional disparities? Evidence from Turkey, UNU‐MERIT Working Paper Series #2014-078, United Nations University, Maastricht.
• CELEBIOGLU, F., DALL’ERBA S. (2010) Spatial Disparities across the Regions of Turkey: An Exploratory Spatial Data Analysis, The Annals of Regional Science 45(2): 379-400.
• CHATTERJI, M. (1992 Convergence Clubs and Endogenous Growth, Oxford Review of Economic Policy 8(4): 57-69.
• CLIFF, A. D. ORD, J. K. (1975). The choice of a test for spatial autocorrelation. In J. C. Davies and M. J. McCullagh (eds) Display and Analysis of Spatial Data, John Wiley and Sons, London, 54-77
• COULOMBE, S., LEE, F.C. (1995) Convergence across Canadian provinces 1961 to 1991, Canadian Journal of Economics 28(4): 886–898.
• DAWKINS, C.J. (2003) Regional Development Theory: Conceptual Foundations, Classic Works, and Recent Developments, Journal of Planning Literature 18(2): 131-172.
• FUENTE, A. (2002) Regional Convergence in Spain: 1965-95, CEPR Discussion Paper No. 3137.
• DOGRUEL, F., DOGRUEL, A.S. (2003) Türkiye’de Bölgesel Gelir Farklılıkları ve Büyüme, in A. H. Köse, F. Şenses and E. Yeldan (ed.), İktisat Üzerine Yazılar I: Küresel Düzen: Birikim, Devlet ve Sınıflar (Korkut Boratav’a Armağan). İstanbul: İletişim, 287–318.
• ECKEY, H.F., KOSFELD, R., TÜRCK, M. (2007) Regional Convergence in Germany: A Geographically Weighted Regression Approach, Spatial Economic Analysis 2(1):45-64.
• ELHORST, P.J. (2014) Spatial Econometrics: From Cross-sectional Data to Spatial Panels, Springer, London.
• ERLAT, H. (2005) “Türkiye’de Bölgesel Yakınsama Sorununa Zaman Dizisi Yaklaşımı,” in H. Erlat (ed.), Bölgesel Gelişme Stratejileri ve Akdeniz Ekonomisi, Turkish Economic Association, 251–276, Ankara.
• FILIZTEKIN, A. (1998) Convergence Across Industries and Provinces in Turkey?, Koc University Working Paper No.1998/08, Koc University, İstanbul.
• GALOR, O. (1996) Convergence? Inferences from Theoretical Models, Economic Journal 106(437): 1056-1069.
• GEZICI, F., HEWINGS, G.J.D. (2002) Spatial Analysis of Regional Inequalities in Turkey, The Real Economics Applications Laboratory Discussion Paper REAL 02-T-11, The Real Economics Applications Laboratory, Urbana.
• GEZICI, F., HEWINGS, G.J.D. (2004) Regional Convergence and the Economic Performance of Peripheral Areas in Turkey, Review of Urban and Regional Development Studies 16(2): 113-132.
• GRIFFITH, D. A. (2003) Spatial Autocorrelation and Spatial Filtering: Gaining Understanding Through Theory and Scientific Visualization, Springer-Verlang, Berlin.
• GRIPAIOS, P., BISHOP, P., KEAST, S. (2000) Differences in GDP Per Head in GB Counties: Some Suggested Explanations, Applied Economics 32(9): 1161–1167.
• HAUGHTON, J., KHANDKER, S. R. (2009) Handbook on Poverty and Inequality, The World Bank, Washington, DC.
• HOFER, H., WÖRGÖTTER, A. (1997) Regional per capita Income Convergence in Austria, Regional Studies 31(1): 1–12.
• KAKWANI, N. C. (1980) Income inequality and poverty: methods of estimation and policy applications. Oxford University Press, New York.
• KAKWANI, N. (1988) Income inequality, welfare and poverty in a developing economy with applications to Sri Lanka. Social Choice and Welfare, 5 (2-3), pp. 199-222.
• KAKWANI, N. (1990) Large sample distribution of several inequality measures with application to Cote d'Ivoire. Living standards measurement study (LSMS) working paper; no. LSM 61. The World Bank, Washington, DC.
• KANGASHARJU, A. (1998) Beta Convergence in Finland: Regional Differences in Speed of Convergence, Applied Economics 30(5): 679–687.
• KARACA, O. (2004) Türkiye’de Bölgeler Arası Gelir Farklılıkları: Yakınsama Var mı?, Discussion Paper No. 2004/7, Turkish Economic Association, Ankara.
• KRUGMAN, P. (1991) Geography and Trade, MIT Press, London.
• LESAGE, J., PACE, R.K. (2009) Introduction to Spatial Econometrics. Boca Raton: CRC Press, Taylor & Francis Group.
• LITCHFIELD, J.A. (1999) Inequality: Methods and Tools, The World Bank Discussion paper, Washington DC.
• LUCAS, R.E.Jr. (1988) On the Mechanics of Economic Development, Journal of Monetary Economics 22:3-42.
• MAURO, L., PODRECCA, E. (1994) The Case of Italian Regions: Convergence or Dualism?, Economic Notes 23(3): 447–472.
• MONFORT, P. (2008) Convergence of EU regions Measures and evolution, European Commission Directorate General for Regional Policy Working Paper 01/2008.
• MICHELIS, L., PAPADOPOULOS, A., PAPANIKO, G. (2004) Regional Convergence in Greece in the 1980s: An Econometric Investigation, Applied Economics 36(8): 881-888.
• OECD (2013) Regions at a Glance, OECD Publishing, Paris.
• PERSSON, J. (1997) Convergence Across the Swedish Counties 1911-1993, European Economic Review 41: 1835–1852.
• REY, S.J., MONTOURI, B.D. (1999) U.S. Regional Income Convergence: A Spatial Econometric Perspective, Regional Studies 33: 143-156.
• ROMER, P. M. (1986) Increasing Returns and Long Run Growth, Journal of Political Economy 94(5): 1002-1037.
• SALA-I-MARTIN, X. (1996) Regional Cohesion: Evidence and Theories of Regional Growth and Convergence, European Economic Review 40(6): 1325– 1352.
• SERRA, M.I., PAZMINO, M.F., LINDOW, G., SUTTON, B., RAMIREZ, G. (2006) Regional Convergence in Latin America, IMF Working Paper Series 06/125.
• SHAHATEET, M.I. (2006) How Serious Regional Economic Inequality in Jordan? Evidence from Two National Household Surveys, American Journal of Applied Sciences 3 (2): 1735-1744.
• SHANKAR, R., SHAH, A. (2003) Bridging the Economic Divide within Nations: A Scorecard on the Performance of Regional Development Policies in Reducing Regional Income Disparities, World Development 31 (8), pp. 1421-1441.
• SHIOJI, E. (1997) It’s Still 2%: Evidence on Convergence from 116 Years of the US States Panel Data, Working Paper, Universitat Pompeu Fabra, Barcelona.
• SIRIOPOULOS, C., ASTERIOU, D. (1998) Testing for Convergence Across the Greek Regions, Regional Studies 32(6): 537–546.
• SOLOW, R.M. (1956) A Contribution to the Theory of Economic Growth, The Quarterly Journal of Economics 70(1): 65-94
• SWAN, T. (1956) Economic Growth and Capital Accumulation, Economic Record 32: 334­61.
• TANSEL, A., GÜNGÖR, N.D. (1998) Economic Growth and Convergence: An Application to the Provinces of Turkey 1975-1995, ERC Working Paper No. 98/9, Middle East Technical University, Ankara.
• THEIL, H. (1967) Economics and Information Theory. Amsterdam: North-Holland.WAHIBA, N.F. (2014) Regional Development and Inequality of Income Distribution, International Journal of Academic Research in Economics and Management Sciences 3(2).
• WILLIAMSON, J. G. (1965) Regional Inequality and the Process of National Development: A Description of the Patterns, Economic Development and Cultural Change 13(4), 1–84.
• YILDIRIM, J., ÖCAL, N. (2006) Income Inequality and Economic Convergence in Turkey, Transition Studies Review, Springer-Verlag 13(3): 559-568.
• YILDIRIM, J., ÖCAL, N., ÖZYILDIRIM, S. (2009) Income Inequality and Economic Convergence in Turkey: A Spatial Effect Analysis, International Regional Science Review 32(2): pp.221- 254.