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Income Inequality and Economic Convergence in Turkey: A Spatial Effect Analysis

Author

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  • Jülide Yildirim

    (Department of Econometrics, Gazi University, Ankara, Turkey, julide@gazi.edu.tr)

  • Nadir Öcal

    (Department of Economics, Middle East Technical University, Ankara, Turkey, ocal@metu.edu.tr)

  • Süheyla Özyildirim

    (Faculty of Business Administration, Bilkent University, Ankara, Turkey, suheyla@bilkent.edu.tr)

Abstract

Even though the convergence of regional per capita income has been a highly debated issue internationally, empirical evidence regarding Turkey is limited as well as contradictory. This article is an attempt to investigate regional income inequality and the convergence dynamics in Turkey for the time period 1987—2001. First, the Theil coefficient of concentration index is used to analyze the dispersion aspects of the convergence process. The geographically based decomposition of inequality suggests a strong correlation between the share of interregional inequality and spatial clustering. Then, we estimate convergence dynamics employing alternative spatial econometric methods. In addition to the global models, we also estimate local models taking spatial variations into account. Empirical analysis indicates that geographically weighted regression improves model fitting with better explanatory power. There is considerable variation in speed of convergence of provinces, which cannot be captured by the traditional beta convergence analysis.

Suggested Citation

  • Jülide Yildirim & Nadir Öcal & Süheyla Özyildirim, 2009. "Income Inequality and Economic Convergence in Turkey: A Spatial Effect Analysis," International Regional Science Review, , vol. 32(2), pages 221-254, April.
    • Handle: RePEc:sae:inrsre:v:32:y:2009:i:2:p:221-254
    DOI: 10.1177/0160017608331250
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    3. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
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    11. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
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    13. Dukhabandhu Sahoo & Diptimayee Mishra & Auro Kumar Sahoo & Phendulwa Zikhona Makunga & Jayanti Behera, 2020. "Regional and subregional analyses of macroeconomic policy strategies for growth and equality in Southern Africa," WIDER Working Paper Series wp-2020-176, World Institute for Development Economic Research (UNU-WIDER).
    14. Hasan Engin Duran, 2015. "Dynamics of Business Cycle Synchronization in Turkey," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(5), pages 581-606, December.
    15. Hasan Engin Duran, 2015. "Dynamics of Business Cycle Synchronization within Turkey," Working Papers 2015/01, Turkish Economic Association.
    16. Ahmet Kýndap & Tayyar Dogan, 2019. "Regional Economic Convergence and Spatial Spillovers in Turkey," International Econometric Review (IER), Econometric Research Association, vol. 11(1), pages 1-23, April.
    17. Celbis M.G. & Crombrugghe D.P.I. de, 2014. "Can internet infrastructure help reduce regional disparities? : evidence from Turkey," MERIT Working Papers 2014-078, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    20. Ömer Tarik Gençosmanoğlu & Kemal Buğra Yamanoğlu, 2023. "The Effect of Import on Export Growth and Convergence: A Spatial Analysis in Türkiye," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 9(2), pages 141-164.
    21. 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.
    22. Fathim Rashna Kallingal & Mohammed Firoz C, 2022. "Developing a methodological framework for capturing regional disparities in social development," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(5), pages 1085-1112, October.
    23. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2022. "Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 274-281, July.

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