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Regions’ economic fitness and sectoral labor productivity: Evidence from Turkey

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  • Ibrahim Tuğrul Çınar
  • Ilhan Korkmaz
  • Tüzin Baycan

Abstract

Economic fitness is a nonlinear method for measuring countries’ and regions’ economic complexity. This study aims to measure the economic complexity of regions and its impacts on sectoral labor productivity in Turkey. By developing and employing a regional economic fitness index, the study addresses the agricultural, industrial, and service sectors at the NUTS‐2 level to more effectively analyze regions’ overall labor productivity. Our findings show that economic fitness positively affects regions’ overall labor productivity, and this positive effect mostly stems from the industrial sector. Furthermore, our findings highlight that there is no relationship between the regional fitness index and the agricultural sector. La aptitud económica es un método no lineal para medir la complejidad económica de los países y regiones. El objetivo de este estudio es medir la complejidad económica de las regiones y su impacto en la productividad laboral sectorial en Turquía. El estudio desarrolla y emplea un índice de aptitud económica regional para abordar los sectores agrícola, industrial y de servicios a nivel NUTS‐2 con el fin de analizar con mayor eficacia la productividad laboral global de las regiones. Los resultados muestran que la aptitud económica afecta positivamente a la productividad laboral global de las regiones, y que este efecto positivo proviene principalmente del sector industrial. Además, nuestros resultados ponen de manifiesto que no existe ninguna relación entre el índice de aptitud regional y el sector agrícola. 経済的適合性 (economic fitness)は、国や地域の経済的な複雑性を測定する非線形手法である。本稿の目的は、トルコにおける地域の経済的複雑性と、セクター別の労働生産性に対するその影響を測定することである。本研究では、地域経済適合性指標を作成し、それを用いてNUTS 2レベルでの農業、工業、サービス部門の、その地域の全体的な労働生産性をより効果的に分析する。結果から、経済的適合性が地域の全体的な労働生産性にプラスの影響を与えており、このプラスの影響は主に工業セクターから派生していることがわかる。さらに、著者らの知見から、地域の適合性指数と農業セクターには関連性がないことが明らかである。

Suggested Citation

  • Ibrahim Tuğrul Çınar & Ilhan Korkmaz & Tüzin Baycan, 2022. "Regions’ economic fitness and sectoral labor productivity: Evidence from Turkey," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 575-598, June.
    • Handle: RePEc:bla:rgscpp:v:14:y:2022:i:3:p:575-598
    DOI: 10.1111/rsp3.12529
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