IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vviiy2015i2p107-114.html
   My bibliography  Save this article

Non-Linear Regional Income Divergence And Policies: Turkey Case

Author

Listed:
  • Hasan Engin DURAN

    (Izmir Institute of Technology, City and Regional Planning Department,Assistant Professor of Economics, G?lbahce Kamp?s?, Izmir Y?ksek Teknoloji Ensit?s?, Mimarl?k Fak?ltesi, ?ehir ve b?lge Planlama B?l?m?, Urla-Izmir, Tel: +90 506 845 59 83)

Abstract

The literature on economic convergence is strongly influenced by Neo-Classical Growth model. It describes a monotone saddle path along which each economy converges towards a unique steady state. Commonly employed method in convergence analysis is the linear cross-sectional regressions which links the annual growth rate of regions to their initial income level. Ignoring the non-linearities is important from a policy perspective that implications obtained from a linear regression can be very different to the policies learned from a non-linear case. Aim of the present study is to analyze regional income convergence in Turkey by using nonparametric convergence regressions. We implement our study for 67 provinces and a period 1975-2000. We find that the relationship between initial income and growth takes a inverted-U shape which means that the very low-income and high-income group of provinces experince a slow growth pattern compared to middle-income group. This has several implications for regional economic pol

Suggested Citation

  • Hasan Engin DURAN, 2015. "Non-Linear Regional Income Divergence And Policies: Turkey Case," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 107-114, December.
    • Handle: RePEc:hrs:journl:v:vii:y:2015:i:2:p:107-114
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/December_2015/10.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Orhan Karaca, 2004. "Türkiye’de Bölgelerarasý Gelir Farklýlýklarý: Yakýnsama Var mý?," Working Papers 2004/7, Turkish Economic Association.
    2. Ferhan Gezici & Geoffrey J. D. Hewings, 2007. "Spatial Analysis of Regional Inequalities in Turkey," European Planning Studies, Taylor & Francis Journals, vol. 15(3), pages 383-403, April.
    3. Sirin Saracoglu & Murat G. Kirdar, 2006. "Does Internal Migration Lead to Faster Regional Convergence in Turkey? an Empirical Investigation," ERSA conference papers ersa06p784, European Regional Science Association.
    4. Hasan Engin Duran, 2011. "Short run dynamics of income disparities and regional cycle synchronization," ERSA conference papers ersa11p937, European Regional Science Association.
    5. Jülide Yildirim & Nadir Öcal & Süheyla Özyildirim, 2009. "Income Inequality and Economic Convergence in Turkey: A Spatial Effect Analysis," International Regional Science Review, , vol. 32(2), pages 221-254, April.
    6. Hasan Engin Duran, 2014. "Short-Run Dynamics of Income Disparities and Regional Cycle Synchronization in the U.S," Growth and Change, Wiley Blackwell, vol. 45(2), pages 292-332, June.
    7. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    8. Stefano Magrini & Margherita Gerolimetto & Hasan Engin Duran, 2015. "Regional Convergence and Aggregate Business Cycle in the United States," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 251-272, February.
    9. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    10. Murat G. Kırdar & D. Şirin Saracoğlu, 2008. "Migration and regional convergence: An empirical investigation for Turkey," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 545-566, November.
    11. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    12. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olga OVCHARENKO & Viktoriia SMIESOVA & Maryna IVANOVA & Nataliia KOVTUN & Liliya ZOLOTUKHINA, 2021. "Economic Security Management At The Meso-Level: Methodological And Legal Approach," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 201-216, June.
    2. Hasan Engin Duran & Andrzej Cieślik, 2021. "The distribution of city sizes in Turkey: A failure of Zipf’s law due to concavity," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1702-1719, October.
    3. Hasan Engin Duran & Burak Dindaroğlu, 2021. "Regional inflation persistence in Turkey," Growth and Change, Wiley Blackwell, vol. 52(1), pages 460-491, March.
    4. Farzaneh KHALILI & Majid AFSHARIRAD & Abdolrahim HASHEMI DIZAJ & Mehdi YAZDANSHENAS BAHOGHOGH, 2021. "Spatial Linkage Between Quality Of Institution, Natural Resources Management With Gdp Per Capita In D8 Countries (Durbin Model In Panel Data)," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 239-256, June.
    5. Duran, Hasan Engin, 2019. "Asymmetries in regional development: Does TFP or capital accumulation matter for spatial inequalities?," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmet Kýndap & Tayyar Dogan, 2019. "Regional Economic Convergence and Spatial Spillovers in Turkey," International Econometric Review (IER), Econometric Research Association, vol. 11(1), pages 1-23, April.
    2. Celbis M.G. & Crombrugghe D.P.I. de, 2014. "Can internet infrastructure help reduce regional disparities? : evidence from Turkey," MERIT Working Papers 2014-078, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Uğur Ursavaş & Carlos Mendez, 2023. "Regional income convergence and conditioning factors in Turkey: revisiting the role of spatial dependence and neighbor effects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 71(2), pages 363-389, October.
    4. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2022. "Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 274-281, July.
    5. Mustafa Gömleksiz & Ahmet Şahbaz & Birol Mercan, 2017. "Regional Economic Convergence in Turkey: Does the Government Really Matter for?," Economies, MDPI, vol. 5(3), pages 1-16, July.
    6. Duran, Hasan Engin, 2019. "Asymmetries in regional development: Does TFP or capital accumulation matter for spatial inequalities?," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    7. Panagiotis Artelaris, 2021. "Regional economic growth and inequality in Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 141-158, February.
    8. Hasan Engin Duran, 2015. "Regional Inflation Convergence In Turkey," Working Papers 2015/10, Turkish Economic Association.
    9. Valerien O. Pede & Raymond J. G. M. Florax & Henri L. F. De Groot, 2007. "Technological Leadership, Human Capital and Economic Growth: a Spatial Econometric Analysis for US Counties, 1969-2003," Annals of Economics and Statistics, GENES, issue 87-88, pages 103-124.
    10. Vítor João Pereira Domingues Martinho, 2021. "Impact of Covid‐19 on the convergence of GDP per capita in OECD countries," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(S1), pages 55-72, November.
    11. Alfredo Cartone & Paolo Postiglione, 2016. "Modelli spaziali di regressione quantilica per l?analisi della convergenza economica regionale," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2016(3), pages 28-48.
    12. Cem Ertur & Julie Le Gallo & Catherine Baumont, 2006. "The European Regional Convergence Process, 1980-1995: Do Spatial Regimes and Spatial Dependence Matter?," International Regional Science Review, , vol. 29(1), pages 3-34, January.
    13. Johan Lundberg, 2006. "Using spatial econometrics to analyse local growth in Sweden," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 303-316.
    14. Catherine Baumont & Cem Ertur & Julie Le Gallo, 2001. "A spatial econometric analysis of geographic spillovers and growth for European regions, 1980-1995," Working Papers hal-01526858, HAL.
    15. Rubiane Daniele Cardoso Almeida & Philipp Ehrl & Tito Belchior Silva Moreira, 2021. "Social and Economic Convergence Across Brazilian States Between 1990 and 2010," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(1), pages 225-246, August.
    16. Stephen Dobson & Carlyn Ramlogan & Eric Strobl, 2006. "Why Do Rates Of Β‐Convergence Differ? A Meta‐Regression Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 153-173, May.
    17. Maarten Bosker & Waldo Krugell, 2008. "Regional Income Evolution In South Africa After Apartheid," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 493-523, August.
    18. Joseph DeJuan & Marc Tomljanovich, 2005. "Income convergence across Canadian provinces in the 20th century: Almost but not quite there," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 567-592, September.
    19. Wilfried Koch, 2005. "Neighborhood Effects In The Solow Model With Spatial Externalities," ERSA conference papers ersa05p723, European Regional Science Association.
    20. Postiglione, Paolo & Benedetti, Roberto & Lafratta, Giovanni, 2010. "A regression tree algorithm for the identification of convergence clubs," Computational Statistics & Data Analysis, Elsevier, vol. 54(11), pages 2776-2785, November.

    More about this item

    Keywords

    Convergence; nonparametric regressions; Regional Policies;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:vii:y:2015:i:2:p:107-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.