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THE SPATIAL DISTRIBUTION OF NEW FIRMS:CAN PERIPHERAL AREAS ESCAPE FROM THE CURSE OF REMOTENESS?

Burhan Karahasan ()

Romanian Journal of Regional Science, 2014, vol. 8, issue 2, 1-28

Abstract: Among various factors affecting the new firms? location decision local demand and supply based linkages has been widely discussed. Even local centripetal forces are important, locations can also benefit from the possible externalities by being in a close proximity to the economic centers. Originating from such a discussion this paper aims to scrutinize the impact of remoteness on the new firms? location decisions in Turkey. Results obtained from provincial data confirm that remoteness matters: peripheral provinces in Turkey are suffering from low levels of new firm formation unlike the provinces with higher market potential and that are closer to economic centers. These results signal the necessity to consider the physical and non-physical networks between regions and the center throughout the regional policy development in a developing economy on her transition path to the European Union.

Keywords: Distance; Market potential; New firms; Turkey (search for similar items in EconPapers)
JEL-codes: O18 R11 R12 (search for similar items in EconPapers)
Date: 2014
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