Agglomeration effects in a developing economy: evidence from Turkey

Cem Ozguzel

Journal of Economic Geography, 2023, vol. 23, issue 4, 823-846

Abstract: I estimate the role of agglomeration economies and other local factors on productivity differences across Turkish provinces, which are some of the highest seen in OECD countries. Using a novel administrative dataset and historical instruments to deal with estimation concerns, I find that the elasticity of productivity to density is higher than in developed countries. Moreover, using an individual panel at the regional level, I find weak sorting effects for workers, contrasting with evidence from developed countries. These results suggest that urbanization patterns could be operating differently in developing countries.

Keywords: Local labor markets; spatial wage disparities; developing country; Turkey (search for similar items in EconPapers)
JEL-codes: J31 R12 R23 (search for similar items in EconPapers)
Date: 2023
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Related works:
Working Paper: Agglomeration Effects in a Developing Economy: Evidence from Turkey (2020)
Working Paper: Agglomeration Effects in a Developing Economy: Evidence from Turkey (2020)
Working Paper: AGGLOMERATION EFFECTS IN A DEVELOPING ECONOMY EVIDENCE FROM TURKEY (2019)
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