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Convergence of Sectoral Productivity in Turkish Provinces: A Markov Chains Model

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  • Temel, T.
  • Tansel, A.
  • Gungor, N.D.

Abstract

this study examines the role that sectors play in aggregate convergence of provincial labor productivity across the 67 provinces of turkey during the 1975-1990 period. a markov chain model is applied to characterize the long-run tendencies of productivity both at the aggregate and sectoral levels. in order to determine the likely sources of aggregate fluctuations, sectoral time-invariant distributions are compared with the aggregate distribution, and those sectors that exhibit similar distribution patterns as that of the aggregate distribution are characterized as dominant sectors. evidence strongly suggests that the aggregate time-invariant distribution is determined mainly by the agricultural, industrial and transportation sectors. specifically, the pattern of polarization of productivity levels in these three sectors is very similar to the pattern prevailing at the aggregate level. the results suggest that, in the long run, two convergence clubs are likely to emerge - one for the agricultural and another for the highly industrialized provinces. an exception is the service sector, which exhibits global convergence.

Suggested Citation

  • Temel, T. & Tansel, A. & Gungor, N.D., 2005. "Convergence of Sectoral Productivity in Turkish Provinces: A Markov Chains Model," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(2), pages 65-84.
    • Handle: RePEc:eaa:ijaeqs:v:2:y2005:i:2_6
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    Cited by:

    1. Burhan Can Karahasan & Fatma Dogruel & Ali Suut Dogruel, 2016. "Can Market Potential Explain Regional Disparities in Developing Countries? Evidence from Turkey," The Developing Economies, Institute of Developing Economies, vol. 54(2), pages 162-197, June.
    2. Mukherjee, D., 2006. "Is the Rate of ‘Convergence’ Always Constant? Some Empirical Evidence from Sector Level Data of 56 countries, 1975-99," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(2).
    3. 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.
    4. 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.

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    More about this item

    Keywords

    convergence; aggregate and sectoral labor productivity; markov chains;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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