Faculty of Business Seminar Series/ Cem Özgüzel

Title : Agglomeration Economies in a Developing Economy: Evidence from Turkey 

Abstract : Spatial inequalities in Turkey are a source of considerable policy concern. In this paper, we estimate agglomeration effects for provinces in Turkey to shed some light on the sources of spatial inequalities in productivity and provide evidence from a developing country context which literature needs. We use social security data, recently made public at NUTS-3 level, for 81 provinces of Turkey for the period 2007-2013 and carry out two-stage estimation. We use a variety of panel data techniques and historical instruments to deal with estimation concerns. We estimate an elasticity of labor productivity with respect to density of 0.038-0.054 which is higher than developed countries and around the levels observed in developing countries. We also discuss issues that might be limiting the agglomeration forces in Turkey that may be limiting benefits from agglomeration.

Place : Meeting Room AB2-345