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Convergence Across Provinces of Turkey : A Spatial Analysis

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  • Altan Aldan
  • Esma Gaygisiz
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    Abstract

    The aim of this study is to analyze regional disparities and to test the convergence hypothesis across the provinces in Turkey. The study also attempts to analyze the spatial spillovers in the growth process of the provinces. The analyses cover the 1987-2001 period. Two alternative methodologies are used in the analyses. First, the methodology of b-convergence based on cross-sectional regressions is used and the effects of spatial dependence are analyzed by using spatial econometric techniques. Second, Markov chain analysis is employed and spatial dependence is integrated using spatial Markov chains. Results from both methodologies signal non-existence of convergence and the existence of spatial spillovers in the growth process of provinces.

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    File URL: http://www.tcmb.gov.tr/research/discus/WP0609ENG.pdf
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    Bibliographic Info

    Paper provided by Research and Monetary Policy Department, Central Bank of the Republic of Turkey in its series Working Papers with number 0609.

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    Date of creation: 2006
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    Handle: RePEc:tcb:wpaper:0609

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    Related research

    Keywords: Regional Disparities; b-convergence; Markov Chains; Spatial Econometrics.;

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    1. LE GALLO, Julie, 2001. "Space-time analysis of GDP disparities among European regions: A Markov chains approach," LATEC - Document de travail - Economie (1991-2003) 2001-06, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
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    Cited by:
    1. Karaman, Fatma & Dogruel, Fatma, 2011. "Regional convergence in Turkey: the role of government in economic environment augmenting activities," MPRA Paper 34271, University Library of Munich, Germany.
    2. Harun Ucak, 2011. "Turkey’s Population Dynamics As A Candidate Country For EU Membership," International Journal of Economics and Financial Issues, Econjournals, vol. 1(4), pages 180-198.

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