DISTRIBUTIONAL DYNAMICS OF REGIONAL INCOMES IN TURKEY: 1987-2014

Authors : Burhan Can KARAHASAN

Pages : 95-107

Doi:10.24954/mjecon.2017.5

View : 12 | Download : 8

Publication Date : 2017-03-15

Article Type : Research Paper

Abstract :This study examines the evolution of regional disparities in Turkey during a period of continuous turmoil and transformation. Given natural differences between pre and post 2001; 1987-2001 and 2004-2014 episodes are explored separately. First set of results from Markov Chain analysis show that sizable regional disparities exist in Turkey regardless of the investigated time interval. That said, post 2001 period shows higher stability and rising regional income inequality. Moreover convergence towards steady states is slower during the 2004-2014 period. Our second set of analyses from spatial conditioning indicate that spatial networks are quiet divergent, as regions locked in relatively poor areas  are getting even more isolated and losing their chances to increase their income levels. This finding is stronger for the 2004-2014 period; indicating that post 2001 witness rising spatial heterogeneity and persistent regional inequalities.
Keywords : Inequality, Spatial Markov Chain, Turkey