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Regional Economic Activity in Turkey: A New Economic Geography Approach

Author

Listed:
  • Mehmet Burak Turgut

    (Bocconi University)

Abstract

This paper studies the spatial economic activity in Turkey and estimates the correlation between wages and consumer demand across NUTS1 regions of Turkey. First, simple market potential function is used to test whether closeness to larger markets has impact on wages. Second, Krugman (1993) economic geography model is estimated to see the agglomeration forces in Turkey. The results suggest that wages are higher in the regions close to larger markets and low trade costs and high share of expenditure on manufactured goods are the forces of agglomeration in Turkey.

Suggested Citation

  • Mehmet Burak Turgut, 2014. "Regional Economic Activity in Turkey: A New Economic Geography Approach," Ekonomik Yaklasim, Ekonomik Yaklasim Association, vol. 25(93), pages 39-63.
    • Handle: RePEc:eyd:eyjrnl:v:25:y:2014:i:93:p:39-63
    DOI: 10.5455/ey.35516
    Note: [Turkish Title] Türkiye'de Bölgesel Ekonomik Aktivite: Yeni Ekonomik Coğrafya Yaklaşımı [Turkish Abstract] Bu çalışma Türkiye'deki mekansal ekonomik aktiviteyi ve Türkiye'nin NUTS1 olarak sınıflandırılmış bölgeleri üzerinde ücret ve müşteri talebi arasındaki ilişkiyi inceler. Öncelikle büyük pazarlara yakınlığın ücretler üzerindeki etkisini test etmek için pazar potansiyel fonksiyonu kullanılır. Daha sonra, Türkiye'deki yığılma kuvvetlerini anlamak için Krugman'ın (1993) ekonomik coğrafya modeli değerlendirilir. Elde edilen sonuçlar büyük pazarlara yakın olan bölgelerde ücretlerin yüksek olduğunu ve düşük ticari maliyetler ile tüketici giderleri içinde sanayi mallarının oranının yüksekliğinin Türkiye'deki yığılma kuvvetleri olduğunu önerir. [Turkish Keywords] Ekonomik coğrafya, market potansiyeli, bölgesel farklılıklar, Türkiye.
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    Cited by:

    1. Andrzej Cieślik & Bartłomiej Rokicki, 2016. "European Integration and Spatial Wage Structure in Poland," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(4), pages 435-453, September.
    2. Sungur Onur, 2019. "Spatial Distribution of Investment Incentives and the Impact of New Incentive System for Less Developed Regions in Turkey," Review of Economic Perspectives, Sciendo, vol. 19(1), pages 25-48, March.
    3. Zahra Dehghan Shabani & Ali Hussein Samadi & Amene Zare, 2017. "Does Market Potential Matter? Evidence on the Impact of Market Potential on Economic Growth in Iranian Provinces," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 847-863, Autumn.

    More about this item

    Keywords

    Economic geography; market potential; regional disparities; Turkey.;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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