IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v24y2020i3p1073-1101.html

Market access and regional dispersion of human capital accumulation in Turkey

Author

Listed:
  • Burhan Can Karahasan
  • Fırat Bilgel

Abstract

Building on early advances in development economics, the theoretical construct of new economic geography asserts that geography plays a crucial role in educational human capital accumulation. Based on this expectation, this study investigates the impact of market access on provincial human capital accumulation in Turkey. Results indicate that market access matters for understanding why some regions lag behind others in terms of average years of schooling. Our results are robust to the inclusion of spatial mechanisms, different specifications of the spatial weight matrix, endogeneity and alternative measurements of market access and to a host of other factors that affect regional human capital accumulation.

Suggested Citation

  • Burhan Can Karahasan & Fırat Bilgel, 2020. "Market access and regional dispersion of human capital accumulation in Turkey," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1073-1101, August.
    • Handle: RePEc:bla:rdevec:v:24:y:2020:i:3:p:1073-1101
    DOI: 10.1111/rode.12676
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.12676
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.12676?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2010. "Estimating Agglomeration Economies with History, Geology, and Worker Effects," NBER Chapters, in: Agglomeration Economics, pages 15-66, National Bureau of Economic Research, Inc.
    2. Matthieu Crozet, 2004. "Do migrants follow market potentials? An estimation of a new economic geography model," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 439-458, August.
    3. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    4. Head, Keith & Mayer, Thierry, 2006. "Regional wage and employment responses to market potential in the EU," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 573-594, September.
    5. Luc Anselin, 2010. "Thirty years of spatial econometrics," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 3-25, March.
    6. P Burridge, 1981. "Testing for a Common Factor in a Spatial Autoregression Model," Environment and Planning A, , vol. 13(7), pages 795-800, July.
    7. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    8. Giordano Mion & Paolo Naticchioni, 2009. "The spatial sorting and matching of skills and firms," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 28-55, February.
    9. Pedro Amaral & Mauro Lemos & Rodrigo Simões & Flávia Chein, 2010. "Regional Imbalances and Market Potential in Brazil," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(4), pages 463-482.
    10. Mion, Giordano, 2004. "Spatial externalities and empirical analysis: the case of Italy," Journal of Urban Economics, Elsevier, vol. 56(1), pages 97-118, July.
    11. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
    12. Fingleton, Bernard, 2008. "Competing models of global dynamics: Evidence from panel models with spatially correlated error components," Economic Modelling, Elsevier, vol. 25(3), pages 542-558, May.
    13. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 01A, Center for International Development at Harvard University.
    14. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    15. Laura Hering & Sandra Poncet, 2010. "Market Access and Individual Wages: Evidence from China," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 145-159, February.
    16. Redding, Stephen & Schott, Peter K., 2003. "Distance, skill deepening and development: will peripheral countries ever get rich?," Journal of Development Economics, Elsevier, vol. 72(2), pages 515-541, December.
    17. Vassilis Monastiriotis, 2009. "Examining the consistency of spatial association patterns across socio-economic indicators: an application to the Greek regions," Empirical Economics, Springer, vol. 37(1), pages 25-49, September.
    18. Keith Head & Thierry Mayer, 2011. "Gravity, market potential and economic development," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 281-294, March.
    19. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    20. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
    21. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    22. Reinhold Kosfeld & Hans-Friedrich Eckey, 2010. "Market access, regional price level and wage disparities: the German case," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 105-128, September.
    23. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    24. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    25. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2006. "Putting new economic geography to the test: Free-ness of trade and agglomeration in the EU regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 613-635, September.
    26. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    27. Hervé Boulhol & Alain de Serres, 2010. "Have developed countries escaped the curse of distance?," Journal of Economic Geography, Oxford University Press, vol. 10(1), pages 113-139, January.
    28. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    29. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-359, May.
    30. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    31. repec:fth:iniesr:430 is not listed on IDEAS
    32. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, December.
    33. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    34. repec:spo:wpecon:info:hdl:2441/c8dmi8nm4pdjkuc9g8mb6c01j is not listed on IDEAS
    35. Rafael Alvarado & Miguel Atienza, 2014. "The role of market access and human capital in regional wage disparities: Empirical evidence for Ecuador," Documentos de Trabajo en Economia y Ciencia Regional 50, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2014.
    36. Gallup, John & Sachs, Jeffrey, 1999. "Geography and Economic Development," Harvard Institute for International Development (HIID) Papers 294434, Harvard University, Kennedy School of Government.
    37. Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, "undated". "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
    38. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
    39. Claude Diebolt & Ralph Hippe, 2018. "Remoteness equals backwardness? Human capital and market access in the European regions: insights from the long run," Education Economics, Taylor & Francis Journals, vol. 26(3), pages 285-304, May.
    40. Annekatrin Niebuhr, 2006. "Market access and regional disparities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 313-334, June.
    41. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, November.
    42. Jesus Lopez-Rodriguez & Cosmin-Gabriel Bolea & Paulino Montes-Solla, 2019. "Sorting Skills by Location in Romania," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-27.
    43. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    44. Umut Erdem, 2016. "Regional Human Capital Distribution And Disparities In Turkey," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(1), pages 16-31, March.
    45. Maarten Bosker & Harry Garretsen, 2010. "Trade costs in empirical New Economic Geography," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 485-511, August.
    46. Ferhan Gezici & Geoffrey J. D. Hewings, 2007. "Spatial Analysis of Regional Inequalities in Turkey," European Planning Studies, Taylor & Francis Journals, vol. 15(3), pages 383-403, April.
    47. Alpay Filiztekin & Burhan Can Karahasan, 2015. "Mapping the Educational Attainment in Turkey," EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey 285, Ekonomik Yaklasim Association.
    48. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    49. Marcelo J. Moreira, 2003. "A Conditional Likelihood Ratio Test for Structural Models," Econometrica, Econometric Society, vol. 71(4), pages 1027-1048, July.
    50. Keith Head & Thierry Mayer, 2011. "Gravity, market potential and development," Sciences Po Economics Publications (main) hal-01024209, HAL.
    51. Burhan Can Karahasan & Fatma Dogruel & Ali Suut Dogruel, 2016. "Can Market Potential Explain Regional Disparities in Developing Countries? Evidence from Turkey," The Developing Economies, Institute of Developing Economies, vol. 54(2), pages 162-197, June.
    52. Ottaviano, Gianmarco I.P. & Pinelli, Dino, 2006. "Market potential and productivity: Evidence from Finnish regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 636-657, September.
    53. Psacharopoulos, George, 1988. "Education and Development: A Review," The World Bank Research Observer, World Bank, vol. 3(1), pages 99-116, January.
    54. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    55. repec:spo:wpmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mb6c01j is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ignatov, Augustin, 2024. "European highway networks, transportation costs, and regional income," Regional Science and Urban Economics, Elsevier, vol. 104(C).
    2. Jinpeng Yang, 2023. "Transaction decision optimization of new electricity market based on virtual power plant participation and Stackelberg game," PLOS ONE, Public Library of Science, vol. 18(4), pages 1-20, April.
    3. Burhan Can Karahasan & Mehmet Pinar, 2023. "Climate change and spatial agricultural development in Turkey," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1699-1720, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burhan Can Karahasan & Firat Bilgel, 2018. "Economic Geography, Growth Dynamics and Human Capital Accumulation in Turkey: Evidence from Regional and Micro Data," Working Papers 1233, Economic Research Forum, revised 10 Oct 2018.
    2. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    3. Burhan Can Karahasan & Fatma Dogruel & Ali Suut Dogruel, 2016. "Can Market Potential Explain Regional Disparities in Developing Countries? Evidence from Turkey," The Developing Economies, Institute of Developing Economies, vol. 54(2), pages 162-197, June.
    4. Gabrielle Gambuli, 2023. "Navigating the Geography of Regional Disparities: Market Access and the Core-Periphery Divide," Thema Working Papers 2023-05, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    5. Julio Martinez-Galarraga & Elisenda Paluzie & Jordi Pons & Javier Silvestre & Daniel A. Tirado, 2021. "New economic geography and economic history: a survey of recent contributions through the lens of the Spanish industrialization process," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(3), pages 719-751, September.
    6. repec:esx:essedp:729 is not listed on IDEAS
    7. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    8. Rafael González-Val & Pau Insa-Sánchez & Julio Martinez-Galarraga & Daniel A. Tirado-Fabregat, 2022. "Market access, the skill premium and human capital in Spain (1860-1930)," Working Papers 0229, European Historical Economics Society (EHES).
    9. Rafael Alvarado & Miguel Atienza, 2014. "The role of market access and human capital in regional wage disparities: Empirical evidence for Ecuador," Documentos de Trabajo en Economia y Ciencia Regional 50, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2014.
    10. Venables, Anthony & Redding, Stephen & Overman, Henry, 2001. "The Economic Geography of Trade Production and Income: A Survey of Empirics," CEPR Discussion Papers 2978, C.E.P.R. Discussion Papers.
    11. Christoph Hammer & Aurélien Fichet de Clairfontaine, 2016. "Trade Costs and Income in European Regions," Department of Economics Working Papers wuwp220, Vienna University of Economics and Business, Department of Economics.
    12. Burhan Can Karahasan, 2014. "The Spatial Distribution Of New Firms:Can Peripheral Areas Escape From The Curse Of Remoteness?," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 8(2), pages 1-28, DECEMBER.
    13. Bernard FINGLETON & Silvia PALOMBI, 2013. "The Wage Curve Reconsidered: Is It Truly An 'Empirical Law Of Economics'?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 49-92.
    14. Pierre-Philippe Combes, 2011. "The empirics of economic geography: how to draw policy implications?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 567-592, September.
    15. Jesús López-Rodríguez & Andrés Faíña, 2007. "Regional Wage Disparities in Europe: What role for Market Access?," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 11, pages 5-23.
    16. Stephen J. Redding, 2013. "Economic Geography: A Review of the Theoretical and Empirical Literature," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 16, pages 497-531, Palgrave Macmillan.
    17. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    18. Maarten Bosker & Harry Garretsen, 2010. "Trade costs in empirical New Economic Geography," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 485-511, August.
    19. Bruna, Fernando, 2024. "Market Potential, panel data, and aggregate fluctuations: All that glitters is not gold," MPRA Paper 121949, University Library of Munich, Germany.
    20. Jesús López-Rodríguez & J. Andrés Faíña, 2000. "Human Capital Accumulation and Geography: Empirical Evidence in the European Union," Regional and Urban Modeling 283600060, EcoMod.
    21. Jesús López-Rodríguez & J. Andrés Faíña, 2000. "Regional Income Disparities in Europe: What Role for Location?," Regional and Urban Modeling 283600059, EcoMod.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:24:y:2020:i:3:p:1073-1101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.