Regional Economic Activity in Turkey: A New Economic Geography Approach
AbstractThis paper studies the spatial economic activity in Turkey and estimates the correlation between wages and consumer demand across NUTS1 regions of Turkey. First, I estimate simple market potential function to test whether closeness to larger markets has impact on wages. Second, I estimate Krugman (1993) economic geography model 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.
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Bibliographic InfoPaper provided by Turkish Economic Association in its series Working Papers with number 2014/5.
Length: 19 pages
Date of creation: 2014
Date of revision:
Regional economic activity; Turkey; economic geography model;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-11 (All new papers)
- NEP-ARA-2014-04-11 (MENA - Middle East & North Africa)
- NEP-GEO-2014-04-11 (Economic Geography)
- NEP-GER-2014-04-11 (German Papers)
- NEP-INT-2014-04-11 (International Trade)
- NEP-URE-2014-04-11 (Urban & Real Estate Economics)
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