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Porter-Type Regional Agglomerations, Export Performance, and Inclusive Regional Policy: An Empirical Assessment of Turkish Manufacturing Sector

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  • Erkul Abdullah

    (Abdullah Erkul, PhD, Assistant Professor, Department of Economics, Faculty of Economic and Administrative Sciences, Balıkesir University, Çağış Campus – 10145 Balıkesir/Turkey)

  • Kırankabeş Mustafa Cem

    (Mustafa Cem Kırankabeş, PhD, Full Professor, Department of Economics, Faculty of Economic and Administrative Sciences, Balıkesir University, Turkey)

Abstract

This study aims to evaluate the medium-term impact of regional agglomerations in the manufacturing sector of Turkey on export performance. To this end, we identified Porter-type agglomerations in ISIC two-digit manufacturing sectors for 58 NUTS-3 regions and the 2008-2019 period. In the empirical analysis section, we used a two-way fixed effects panel data model to analyze the effects of these agglomerations on sectoral export performance. The findings indicate that the advantages of Porter-type agglomeration are limited to certain mid-tech sectors. Also, labor-intensive low-tech manufacturing sectors are found to have no agglomeration advantages in export performance compared to mid-tech sectors. The findings indicate a technology policy need and an inclusive smart specialization strategy (3S) to enhance productivity and export competitiveness.

Suggested Citation

  • Erkul Abdullah & Kırankabeş Mustafa Cem, 2024. "Porter-Type Regional Agglomerations, Export Performance, and Inclusive Regional Policy: An Empirical Assessment of Turkish Manufacturing Sector," South East European Journal of Economics and Business, Sciendo, vol. 19(2), pages 136-152.
    • Handle: RePEc:vrs:seejeb:v:19:y:2024:i:2:p:136-152:n:1009
    DOI: 10.2478/jeb-2024-0020
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    More about this item

    Keywords

    agglomeration economies; export performance; manufacturing sector; Turkey;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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