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Regional convergence in Turkey: the role of government in economic environment augmenting activities

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  • Karaman, Fatma
  • Dogruel, Fatma

Abstract

Regional disparities are important concerns for the researchers as well as the policy makers in both developed and developing countries. The government, as a leading actor in regional policies, can create externalities through investments not only in the real sectors, but also in infrastructure and institutions. Investments in education, health and transportation enhance the quality of life and business environment, and trigger the development in those regions. The paper defines this type of government role in a particular region as “economic environment augmenting activities of the government”. The paper focuses on two types of initiatives of the government: regional universities and the existence of an airport. The main findings show that spending impact suppresses knowledge impact in the low income provinces. And, there is a threshold for the regional income level: The demand effect of government initiatives as state university and providing air transport has greater impact in low-income provinces, particularly before 2000.

Suggested Citation

  • Karaman, Fatma & Dogruel, Fatma, 2011. "Regional convergence in Turkey: the role of government in economic environment augmenting activities," MPRA Paper 34271, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34271
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    References listed on IDEAS

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    Cited by:

    1. Davide Luca & Andrés Rodríguez-Pose, 2014. "Electoral politics and regional development: assessing the geographical allocation of public investment in Turkey," Working Papers. Collection A: Public economics, governance and decentralization 1402, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Davide Luca & Andr�s Rodr�guez-Pose, 2015. "Distributive Politics and Regional Development: Assessing the Territorial Distribution of Turkey's Public Investment," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1518-1540, November.
    3. Çınar Tuğrul, 2017. "Spatial Dimensions of Sectoral Labor Productivity Convergence in Turkey: A Spatial Panel Data Approach," Review of Middle East Economics and Finance, De Gruyter, vol. 13(1), pages 1-14, April.
    4. Davide Luca, 2013. "Regional development goals and distributive politics in the allocation of Turkey's central investments: socioeconomic criteria, parties and legislators' personal networks," ERSA conference papers ersa13p981, European Regional Science Association.

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    More about this item

    Keywords

    Regional convergence; role of government; effects of universities; panel-data modeling; Turkey;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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