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      Income inequality and economic convergence in Turkey: a spatial effect analysis

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      Author(s)
      Yildirim, J.
      Öcal, N.
      Özyildirim, S.
      Date
      2009
      Source Title
      International Regional Science Review
      Print ISSN
      0160-0176
      Publisher
      Sage Publications
      Volume
      32
      Issue
      2
      Pages
      221 - 254
      Language
      English
      Type
      Article
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      Abstract
      Even though the convergence of regional per capita income has been a highly debated issue internationally, empirical evidence regarding Turkey is limited as well as contradictory. This article is an attempt to investigate regional income inequality and the convergence dynamics in Turkey for the time period 1987-2001. First, the Theil coefficient of concentration index is used to analyze the dispersion aspects of the convergence process. The geographically based decomposition of inequality suggests a strong correlation between the share of interregional inequality and spatial clustering. Then, we estimate convergence dynamics employing alternative spatial econometric methods. In addition to the global models, we also estimate local models taking spatial variations into account. Empirical analysis indicates that geographically weighted regression improves model fitting with better explanatory power. There is considerable variation in speed of convergence of provinces, which cannot be captured by the traditional beta convergence analysis.
      Keywords
      Economic convergence
      Regional inequality
      Spatial analysis
      Turkey
      Convergence
      Decomposition analysis
      Econometrics
      Empirical analysis
      Estimation method
      Income distribution
      Regression analysis
      Spatial analysis
      Eurasia
      Turkey
      Permalink
      http://hdl.handle.net/11693/22784
      Published Version (Please cite this version)
      http://dx.doi.org/10.1177/0160017608331250
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      • Department of Management 579
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