Convergence Across Provinces of Turkey : A Spatial Analysis

The aim of this study is to analyze regional disparities and to test the convergence hypothesis across the provinces in Turkey. The study also attempts to analyze the spatial spillovers in the growth process of the provinces. The analyses cover the 1987-2001 period. Two alternative methodologies are used in the analyses. First, the methodology of b-convergence based on cross-sectional regressions is used and the effects of spatial dependence are analyzed by using spatial econometric techniques. Second, Markov chain analysis is employed and spatial dependence is integrated using spatial Markov chains. Results from both methodologies signal non-existence of convergence and the existence of spatial spillovers in the growth process of provinces.