The Deindustrialization of Istanbul

Fatma Doğruel and A. Suut Dogruel
Authors registered in the RePEc Author Service: Ali̇ Suut Doğruel ()

MPRA Paper from University Library of Munich, Germany

Abstract: Istanbul and Adana are among the oldest and important industrial zones of Turkey. However, the shares of these two regions in the Turkish manufacturing sector substantially decreased after the year 1980. Initially, Adana was a center for the textile industry and the textile was the engine of the Turkish manufacturing sector. During 1980’s and 1990’s, textile industry gradually lost its dominance. Therefore, the change in the share of Adana can be explained by this phenomenon. On the other hand, manufacturing activities in Istanbul are highly diversified. The basic factor behind the decrease in the share of manufacturing sector of Istanbul is the deindustrialization policy implemented in this city during the last several decades. As a result of this policy some of the plants moved to neighborhoods of Istanbul. At the same time, constructions of new large scale plants were not allowed. In spite of the implementation of the deindustrialization policy, Istanbul still have largest share in the Turkish manufacturing sector. Considering the geographical proximity, in addition to direct effects on Istanbul, it is possible to expect that these policies may indirectly affect neighborhood regions. Employing the spatial statistical techniques, we analyze the growth of the manufacturing in Istanbul and its neighborhoods. The paper also focuses on the effects of the deindustrialization policy on the productivity and the firm size in Istanbul.

Keywords: deindustrialization policy; productivity changes; firm size; shift-share analysis (search for similar items in EconPapers)
JEL-codes: O18 R12 R38 (search for similar items in EconPapers)
Date: 2010-09
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-eff, nep-his and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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