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The Effects of Public Capital on Regional Convergence in Turkey

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Author Info

  • A. Özlem Önder

    ()
    (Department of Economics, Ege University)

  • Metin Karadag

    ()
    (Department of Economics, Ege University)

  • Ertugrul Deliktas

    ()
    (Department of Economics, Ege University)

Abstract

In recent years there have been many studies that explore the impact of public capital formation on economic growth at regional level, because public capital might give rise to reducing regional disparities across regions. Regarding Turkey, investigating the effects of public capital on economic convergence at the regional level gains importance since significant regional disparities exist between the regions. This study attempts to explore the dynamic effects of public capital on output per capita in terms of convergence in the Turkish regions. A conditional convergence model based on per capita GDP and public capital is estimated using the panel data set of Turkish regions at NUTS 1 level for the time period 1980-2001. The spatial effects are also investigated. The results show that there exists conditional convergence. The results also reveal that in some of the models public capital has a positive and significant effect on output per capita. However, in the models with spatial effects the public capital does not have a significant effect on regional convergence.

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File URL: http://iibf.ege.edu.tr/economics/papers/wp07-01.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Ege University, Department of Economics in its series Working Papers with number 0701.

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Length: 24 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:ege:wpaper:0701

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Web page: http://www.iibf.ege.edu.tr/economics/
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Keywords: Regional development; public capital; convergence; Turkish regions; spatial effects;

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References

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  1. Orhan Karaca, 2004. "Türkiye’de Bölgelerarasý Gelir Farklýlýklarý: Yakýnsama Var mý?," Working Papers 2004/7, Turkish Economic Association.
  2. Teresa Garcia-Milà & Therese J. McGuire & Robert H. Porter, 1993. "The effect of public capital in state-level production functions reconsidered," Economics Working Papers 36, Department of Economics and Business, Universitat Pompeu Fabra.
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Cited by:
  1. Ertugrul Deliktas & A. Önder & Metin Karadag, 2009. "The spillover effects of public capital on the Turkish private manufacturing industries in the geographical regions," The Annals of Regional Science, Springer, vol. 43(2), pages 365-378, June.
  2. Metin KARADAG, 2010. "The Impact of Public Capital on the Efficiency of Private Manufacturing Industry at the Regional Level," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 10(4), pages 1167-1174.

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