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The Deindustrialization of Istanbul

Author

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  • Dogruel, Fatma
  • Dogruel, A. Suut

Abstract

Istanbul and Adana are among the oldest and important industrial zones of Turkey. However, the shares of these two regions in the Turkish manufacturing sector substantially decreased after the year 1980. Initially, Adana was a center for the textile industry and the textile was the engine of the Turkish manufacturing sector. During 1980’s and 1990’s, textile industry gradually lost its dominance. Therefore, the change in the share of Adana can be explained by this phenomenon. On the other hand, manufacturing activities in Istanbul are highly diversified. The basic factor behind the decrease in the share of manufacturing sector of Istanbul is the deindustrialization policy implemented in this city during the last several decades. As a result of this policy some of the plants moved to neighborhoods of Istanbul. At the same time, constructions of new large scale plants were not allowed. In spite of the implementation of the deindustrialization policy, Istanbul still have largest share in the Turkish manufacturing sector. Considering the geographical proximity, in addition to direct effects on Istanbul, it is possible to expect that these policies may indirectly affect neighborhood regions. Employing the spatial statistical techniques, we analyze the growth of the manufacturing in Istanbul and its neighborhoods. The paper also focuses on the effects of the deindustrialization policy on the productivity and the firm size in Istanbul.

Suggested Citation

  • Dogruel, Fatma & Dogruel, A. Suut, 2010. "The Deindustrialization of Istanbul," MPRA Paper 27070, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27070
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    File URL: https://mpra.ub.uni-muenchen.de/27070/1/MPRA_paper_27070.pdf
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    Cited by:

    1. Fatma Dogruel & Suut Dogruel, 2011. "Privatization and regional distribution of manufacturing in Turkey," Working Papers 2011/4, Turkish Economic Association.

    More about this item

    Keywords

    deindustrialization policy; productivity changes; firm size; shift-share analysis;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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