Regional Income Convergence in Turkey: An Empirical Analysis from an Endogenous Growth Perspective

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Bolkol H. K.

PANOECONOMICUS, vol.70, no.1, pp.127-153, 2023 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 70 Issue: 1
  • Publication Date: 2023
  • Doi Number: 10.2298/pan190428010b
  • Journal Name: PANOECONOMICUS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, ABI/INFORM, Central & Eastern European Academic Source (CEEAS), EconLit, PAIS International, Directory of Open Access Journals
  • Page Numbers: pp.127-153
  • Marmara University Affiliated: Yes

Abstract

This study analyzes convergence among regions of Turkey from an endogenous growth perspective. The results show that human capital, which is represented with R&D personnel, has a negative impact on economic growth in the regions based on its percentage in total employment. Moreover, we find that there is an estimated U-shaped relationship, which implies that if the percentage of R&D personnel in total employment increases after a certain level, the effect has a tendency of turning positive; the west region is especially closer to having a positive effect. However, regarding convergence, the relatively high-income west is closer to experiencing the positive effect of R&D personnel. Moreover, due to the relatively low percentage of R&D personnel in the east region, the economic growth of the east region is more negatively affected by R&D personnel. Therefore, using a strategy that is based on increasing the percentage of R&D personnel cannot help the east region to close the differences in income.