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Decentralization, economic development, and growth in Turkish provinces

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  • Tosun, Mehmet Serkan
  • Yilmaz, Serdar

Abstract

There have been important developments in the decentralization of the government structure in Turkey since the early 1980s. This paper examines economic development and growth in Turkish provinces. Although there is a rich literature on the economic effects of government decentralization from both developed and developing countries, these effects have not been examined widely in the context of Turkish local governments. The authors first describe changes since the early 1980s and recent reform efforts. They then provide an empirical analysis of the effects of decentralization in Turkish provinces using cross-sectional and panel data approaches. The panel dataset consists of 67 provinces from 1976 to 2001. The analysis examines whether variations in local decentralization across these provinces and across time have had a significant impact on economic development and growth in those provinces. The findings suggest a weak negative economic effect of decentralization through a number of municipalities per capita. However, the findings do not show any significant impact from the creation of new provinces by separation from the existing ones.

Suggested Citation

  • Tosun, Mehmet Serkan & Yilmaz, Serdar, 2008. "Decentralization, economic development, and growth in Turkish provinces," Policy Research Working Paper Series 4725, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4725
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    References listed on IDEAS

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    Cited by:

    1. Pinar Falcioglu, 2011. "Location and Determinants of Productivity: The Case of the Manufacturing Industry in Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 86-96, November.
    2. Pinar Falcioglu, 2011. "Location and Determinants of Productivity: The Case of the Manufacturing Industry in Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 86-96, November.
    3. repec:eee:rujoec:v:1:y:2015:i:4:p:404-418 is not listed on IDEAS

    More about this item

    Keywords

    Municipal Financial Management; Economic Theory&Research; Regional Governance; Intergovernmental Fiscal Relations and Local Finance Management; Public Sector Management and Reform;

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