Regional inequalities and the West-East divide in Turkey since 1913

Abstract

This paper examines the evolution of regional disparities within the present-day borders of Turkey since 1913. Based on our estimates for 58 provinces, we find beta-convergence, an inverse U, and more recently, the beginnings of an N-shaped pattern for value added per capita. We also find that regional disparities in Turkey exhibit a number of special features that do not easily fit the well-studied pattern of the early industrializers. First, while per capita value added in other regions moved towards country averages, the differences between the East and the rest of the country persisted and even increased until recently. Second, spatial distribution of economic activity became more concentrated over time due to continued migration to the megacity of Istanbul. Third, we find that regional disparities in per capita value added in Turkey and other developing countries have been higher than those experienced by the early industrializers. These findings raise questions about the extent to which the regional disparities experiences of Turkey and other developing countries have been different than those of the early industrializers.