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The Spatial Distribution Of New Firms:Can Peripheral Areas Escape From The Curse Of Remoteness?

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  • Burhan Can Karahasan

    (Economics and Finance Department of Piri Reis University, Istanbul,Turkey)

Abstract

Among various factors affecting the new firms? location decision local demand and supply based linkages has been widely discussed. Even local centripetal forces are important, locations can also benefit from the possible externalities by being in a close proximity to the economic centers. Originating from such a discussion this paper aims to scrutinize the impact of remoteness on the new firms? location decisions in Turkey. Results obtained from provincial data confirm that remoteness matters: peripheral provinces in Turkey are suffering from low levels of new firm formation unlike the provinces with higher market potential and that are closer to economic centers. These results signal the necessity to consider the physical and non-physical networks between regions and the center throughout the regional policy development in a developing economy on her transition path to the European Union.

Suggested Citation

  • Burhan Can Karahasan, 2014. "The Spatial Distribution Of New Firms:Can Peripheral Areas Escape From The Curse Of Remoteness?," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 8(2), pages 1-28, DECEMBER.
    • Handle: RePEc:rrs:journl:v:8:y:2014:i:2:p:1-28
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    2. Ferhan Gezici & Burçin Yazgı Walsh & Sinem Metin Kacar, 2017. "Regional and structural analysis of the manufacturing industry in Turkey," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 209-230, July.

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    More about this item

    Keywords

    Distance; Market potential; New firms; Turkey;
    All these keywords.

    JEL classification:

    • 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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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