Spatial Dimensions of Sectoral Labor Productivity Convergence in Turkey: A Spatial Panel Data Approach

Çinar I. T.

REVIEW OF MIDDLE EAST ECONOMICS AND FINANCE, vol.13, no.1, pp.20170006, 2017 (Peer-Reviewed Journal)


The purpose of this study is to investigate spatial dimensions of interregional labor productivity convergence in Turkey between 2005 and 2011 period in three sector disaggregation. We employed spatial panel data approach to investigate the absolute and conditional beta convergence. Annual gross value added per worker data has been used as labor productivity proxy for 26 sub-regions. Analysis results show us that absolute and conditional convergence is highly significant for all agriculture, industry and services sector and also in sectors total. We also found that, while industry, services and sectors total show significant spatial dependency, there is no strong evidence of spatial interaction in agriculture sector for Turkey. Structural problems of Turkish agriculture sector are considered to be the main reasons behind this finding.