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A Note on the Efficiency Effects of Agglomeration Economies: Turkish Evidence

Author

Listed:
  • K. Peren Arin
  • Tolga Omay
  • Deniz Timurçin

    (Cankaya University, Turkey)

Abstract

By using a very novel dataset from Turkish SMEs, this paper investigates the effects of agglomeration economies on productive and allocative efficiency. After controlling for unobserved heterogeneity at the time level, our empirical results from ordered panel probit models provide evidence that clusters have no statistically significant effect on productive efficiency but a negative effect on allocative efficiency. We also show that the increase in prices is not due to increased product differentiation; therefore, it is most likely due to collusion.

Suggested Citation

  • K. Peren Arin & Tolga Omay & Deniz Timurçin, 2014. "A Note on the Efficiency Effects of Agglomeration Economies: Turkish Evidence," Journal of Reviews on Global Economics, Lifescience Global, vol. 3, pages 186-189.
    • Handle: RePEc:lif:jrgelg:v:3:y:2014:p:186-189
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    More about this item

    Keywords

    SMEs; Cluster; Competitiveness; Productive and Allocative Efficiency; Ordered Panel Probit Models;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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