Analysis of Regional Income Convergence in Turkey

Hakki Kutay Bolkol
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Hakki Kutay Bolkol: Istanbul 29 Mayis University, Department of Economics, Istanbul

International Journal of Research in Business and Social Science (2147-4478), 2019, vol. 8, issue 2, 01-28

Abstract: This work investigates convergence among regions of Turkey with neoclassical exogenous growth perspective. According to results, it can be stated that there is a tendency of convergence among the regions of Turkey. However, there is an important crisis (2008 crisis) in the investigation period of this study in which the tendency of convergence increases. Besides, descriptive statistics show that during the crisis, the speed of convergence increases, however, apart from crisis and post-crisis, excess capacity periods it is impossible to state that there is convergence among regions of Turkey. On the other side, descriptive statistics show that periods without economic crisis also do not indicate divergence. Therefore, it cannot be stated that there is divergence or convergence among regions of Turkey for the investigation period of this study but the main conclusion is that crisis has a positive impact with respect to closing income differences among regions. Key Words:Economic Growth, Regional Convergence, Turkey

Date: 2019
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