PROVINCES-LEVEL ANALYSIS OF THE REGIONAL INCOME DISTRIBUTION IN TURKEY: 1990-2006

Ozcan Dagdemir and Hakan Acaroglu ()
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Hakan Acaroglu: Osmangazi University

Anadolu University Journal of Social Sciences, 2011, vol. 11, issue 1, 39-56

Abstract: In this study, regional income distribution in Turkey during 1990-2006 period are analyzed in terms of neoclassic convergence hypothesis by using provinces level Per Capita Gross Domestic Production (PCGDP) and Per Capita Income (PCI) and the reasons of regional income gaps are examined. Regional inequality measures indicated that the PCI distribution is more equal than the PCGDP distribution. Regional income disparities decreased during 1990-2001. Although the tendency of decrease in regional disparity continues for the PCI, disparities for the PCGDP started to increase during 2001-2006. The results of the cross-section analysis denote that the PCGDP is explained by the variables of provinceÕs capital stock, work force, human capital, service sector productivity and urbanization ratio. The PCI is determined by the redistribution policies and explained by the variables such as employment in public sector, political representation and priority provinces for development. Findings of the study reveal that regional policies are required for the economic equality between regions in Turkey.

Keywords: Regional income distribution; economic convergence; redistribution policy. (search for similar items in EconPapers)
JEL-codes: O18 R12 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:and:journl:v:11:y:2011:i:1:p:39-56

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