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Is there Really Divergence Across Turkish Provinces? Evidence From the Lagrange Multiplier Unit Root Tests

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  • Alper Aslan
  • Ferit Kula

Abstract

Using data on per capita income among 67 provinces in Turkey over the period 1975--2001, regional stochastic convergence is evaluated. This study employees the LM unit root test to endogenously determine the number and location of structural breaks for each province. On the contrary, convergence literature on Turkish provinces, both univariate and panel LM tests provide strong evidence for convergence except for the provinces of Bitlis and Erzurum when structural breaks are taken into account. Our empirical results are in accordance with the neoclassical model.

Suggested Citation

  • Alper Aslan & Ferit Kula, 2011. "Is there Really Divergence Across Turkish Provinces? Evidence From the Lagrange Multiplier Unit Root Tests," European Planning Studies, Taylor & Francis Journals, vol. 19(3), pages 539-549, March.
  • Handle: RePEc:taf:eurpls:v:19:y:2011:i:3:p:539-549
    DOI: 10.1080/09654313.2011.548359
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    References listed on IDEAS

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    1. Junsoo Lee & Mark C. Strazicich, 2013. "Minimum LM unit root test with one structural break," Economics Bulletin, AccessEcon, vol. 33(4), pages 2483-2492.
    2. Orhan Karaca, 2004. "Türkiye’de Bölgelerarasý Gelir Farklýlýklarý: Yakýnsama Var mý?," Working Papers 2004/7, Turkish Economic Association.
    3. Altan Aldan & Esma Gaygisiz, 2006. "Convergence Across Provinces of Turkey : A Spatial Analysis," Working Papers 0609, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
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    Cited by:

    1. 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.
    2. , Aisdl, 2021. "Factors Determining the Development of Minimum Comparable Areas and Spatial Interaction," OSF Preprints 9e7xz, Center for Open Science.
    3. Burcu Ozcan, 2014. "Does Income Converge among EU Member Countries following the Post-War Period? Evidence from the PANKPSS Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 22-38, October.
    4. Tolga AKSOY & Feride GONEL, 2016. "Does human capital shortage cause inequality? Evidence from Turkish provinces," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 16(2), pages 227-240.

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