{"id":2720,"date":"2015-12-03T23:01:31","date_gmt":"2015-12-03T21:01:31","guid":{"rendered":"http:\/\/www.rsijournal.eu\/?p=2720"},"modified":"2021-01-20T13:19:28","modified_gmt":"2021-01-20T11:19:28","slug":"non-linear-regional-income-divergence-and-policies-turkey-case","status":"publish","type":"post","link":"https:\/\/rsijournal.eu\/?p=2720","title":{"rendered":"NON-LINEAR REGIONAL INCOME DIVERGENCE AND POLICIES: TURKEY CASE"},"content":{"rendered":"<h2>Hasan Engin DURAN<\/h2>\n<address>Izmir Institute of Technology, City and Regional Planning Department,Assistant Professor of Economics, G\u00fclbahce Kamp\u00fcs\u00fc, Izmir Y\u00fcksek Teknoloji Ensit\u00fcs\u00fc, Mimarl\u0131k Fak\u00fcltesi, \u015eehir ve b\u00f6lge Planlama B\u00f6l\u00fcm\u00fc, Urla-Izmir,\u00a0 Tel: +90 506 845 59 83<\/address>\n<address> <\/address>\n<address>enginduran@iyte.edu.tr<\/address>\n<p><strong>Abstract<\/strong><\/p>\n<p>The literature on economic convergence is strongly influenced by Neo-Classical Growth model. It describes a monotone saddle path along which each economy converges towards a unique steady state. Commonly employed method in convergence analysis is the linear cross-sectional regressions which links the annual growth rate of regions to their initial income level. Ignoring the non-linearities is important from a policy perspective that implications obtained from a linear regression can be very different to the policies learned from a non-linear case. Aim of the present study is to analyze regional income convergence in Turkey by using nonparametric convergence regressions. We implement our study for 67 provinces and a period 1975-2000. We find that the relationship between initial income and growth takes a\u00a0 inverted-U shape which means that the very low-income and high-income group of provinces experince a slow growth pattern compared to middle-income group. This has several implications for regional economic policies. First, middle-income provinces are able to stimulate their economies and fulfill their potential for convergence by market forces. Second, however, the very low-income provinces need a substantial help and assistance.It, therefore,\u00a0 becomes a natural necessity to direct policy instruments such as subsidies, direct and indirect income transfers, tax exemptions and other resources\u00a0 to these areas. In this way, nonparametric estimations provide a very useful guide to the way how the resources should be allocated across provinces.<\/p>\n<p><strong>Keywords:<\/strong> Convergence, nonparametric regressions, Regional Policies<\/p>\n<p><strong>JEL classification:<\/strong> R11, R12<br \/>\n<em><a href=\"http:\/\/www.rsijournal.eu\/ARTICLES\/December_2015\/10.pdf\" target=\"_blank\" rel=\"noopener\">read more<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hasan Engin DURAN Izmir Institute of Technology, City and Regional Planning Department,Assistant Professor of Economics, G\u00fclbahce Kamp\u00fcs\u00fc, Izmir Y\u00fcksek Teknoloji Ensit\u00fcs\u00fc, Mimarl\u0131k Fak\u00fcltesi, \u015eehir ve b\u00f6lge Planlama B\u00f6l\u00fcm\u00fc, Urla-Izmir,\u00a0 Tel: +90 506 845 59 83 enginduran@iyte.edu.tr Abstract The literature on economic convergence is strongly influenced by Neo-Classical Growth model. It describes a monotone saddle path&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[181],"tags":[233,234,235],"class_list":["post-2720","post","type-post","status-publish","format-standard","hentry","category-published","tag-convergence","tag-nonparametric-regressions","tag-regional-policies"],"_links":{"self":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/2720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2720"}],"version-history":[{"count":3,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/2720\/revisions"}],"predecessor-version":[{"id":3816,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=\/wp\/v2\/posts\/2720\/revisions\/3816"}],"wp:attachment":[{"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rsijournal.eu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}