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Can neighbor regions shape club convergence? Spatial Markov chain analysis for Turkey

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  • Burhan Can Karahasan

    (Piri Reis University)

Abstract

This study explores the impact of neighbor regions on the club convergence for Turkey. Markov chain analyses are augmented by using the spatial lag conditioning. The central hypothesis is that, having a rich (poor) spatial proximity increases the chances to move towards higher (lower) income classes. Our preliminary evidence covers the 1975–2017 period and points out that Turkish regions are not converging on average rather converging to varying income levels. This signals the formation of convergence clubs. Our augmented analyses highlight that the club convergence process is influenced from the income level of neighbor regions. Those regions whose neighbors belong to high income classes have higher chances to move to higher income classes, whereas the peripheral regions linked with the poor ones are getting more isolated. Our results highlight that regional policy framework and local economic activity has an influence beyond the administrative boundaries of regions. This calls for spatially flexible and smart local policies to combat with regional disparities.

Suggested Citation

  • Burhan Can Karahasan, 2020. "Can neighbor regions shape club convergence? Spatial Markov chain analysis for Turkey," Letters in Spatial and Resource Sciences, Springer, vol. 13(2), pages 117-131, August.
    • Handle: RePEc:spr:lsprsc:v:13:y:2020:i:2:d:10.1007_s12076-020-00248-z
    DOI: 10.1007/s12076-020-00248-z
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    Cited by:

    1. Uğur Ursavaş & Carlos Mendez, 2023. "Regional income convergence and conditioning factors in Turkey: revisiting the role of spatial dependence and neighbor effects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 71(2), pages 363-389, October.

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    More about this item

    Keywords

    Club convergence; Regional inequality; Spatial proximity;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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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