home
SevinÁ MIHCI
DETERMINANTS OF CROSS-REGIONAL INCOME DIFFERENTIALS: THE CASE OF TURKEY
 

Abstract: The basic goal of this study is to enquire the major determinants of income and rate-of-growth disparities amongst Turkish regions. Accordingly, coming up with a number of policy proposals to tackle the question of cross-regional income distribution is modestly one of the next objectives. The method we opt for is the empirical estimation methods for panel data. To this end, a pooled data set of Turkish provinces for the period 1980-2000 is employed. It is objected to examine the main causes of income and growth differential among Turkish regions especially by taking into account the likely factors advocated in the literature by neoclassical theory, endogenous growth theories and new economic geography models. The coefficient of variations shows that the most varying factors amongst regions are the relative shares in total industrial output, industrial employment rates and demographic concentration, besides per-capita investment and income. Estimation results indicate that differences in physical and human capital accumulation, the industrial composition of employment and demographic variables are amongst the basic determinants of cross-provincial per-capita income disparity.

 
JEL: R11,O47, C33.
Keywords: Regional growth, panel data, convergence, endogenous growth, new economic geography, coefficient of variation.

 

 

Download Full Text