Skip to main content

Advertisement

SpringerLink
Log in

Regional and structural analysis of the manufacturing industry in Turkey

  • Original Paper
  • Published:
The Annals of Regional Science Aims and scope Submit manuscript

Abstract

The geography of the manufacturing industry has been changing due to technological development, flexible production and reducing transportation costs regarding the new specialization and distribution process in the world. While manufacturing production has been moving from developed countries to the relatively less developed ones, which have become the emerging economies over the last two decades, the concentration of these activities within the countries has always received the attention of researchers. On the other hand, not only the geographical shift but also structural shifts have increasingly been an important phenomenon of the twenty-first century. It is known that the level of technology and innovation makes a significant contribution to regional economic development. Determinants of manufacturing agglomerations have created a wide literature based on different empirical studies. Moreover the structural changes of industry need to be investigated regarding the spatial agglomerations. The aim of this paper is to explore how the factors of manufacturing agglomerations have differentiated due to the technological level across the country. Furthermore, we assume that the agglomeration mechanism is likely to vary across the space. Therefore, we have run both global and local regression models based on the employment data of the 81 NUTS III level regions (provinces) of Turkey in 2012. The results point out that the factors of agglomerations are different in the east and west provinces, while GWR has significantly improved global results.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Notes

  1. According to Kharas and Kohli (2011), countries mostly could not compete with low wage economies in manufacturing exports and could not compete with developed ones with high skill innovations and were stuck in the middle-income trap.

  2. The Hirschman–Herfindahl index of industrial spatial concentration is given by the sum over all regions of the squared deviations of each region’s share of total national manufacturing. Where an industry is evenly distributed across an urban system, such that its spatial distribution exactly mirrors that of the urban hierarchy, the value will be 0.

References

  • Acemoglu D (2002) Technical change, inequality and the labor market. J Econ Lit 40:7–72

    Article  Google Scholar 

  • Alecke B, Alsleben C, Scharr F, Untiedt G (2006) Are there really high tech clusters? The geographic concentration of German manufacturing industries and its determinants. Ann Reg Sci 40:19–42

    Article  Google Scholar 

  • Becattini G (1989) Sectors and/or districts: some remarks on the conceptual foundations of industrial economics. In: Goodman E, Bamford J (eds) Small firms and industrial districts in Italy. Routledge, London

    Google Scholar 

  • Birkan AÖ, Akdoğu SK (2016) The geography of financial intermediation in Turkey: 1998–2013. Ann Reg Sci 57(1):31–61

    Article  Google Scholar 

  • Bramanti A, Maggioni MA (eds) (1997) The dynamics of milieux: the network analysis approach. Ashgate, Aldershot

    Google Scholar 

  • Breitenecker RJ (2007) Analysing regional firm startup activity using geographically weighted regression: the case of Austria. In: 15th European young statisticians meeting, September 10–14, 2007, Castro Urdiales, Spain

  • Brülhart M, Torstensson J (1996) Regional integration, scale economies and industry location. Discussion Paper No. 1435, Centre for Economic Policy Research

  • Capello R (2007) Regional economics. Routledge, New York

    Google Scholar 

  • Cheng S, Li H (2011) Spatially varying relationships of new firm formation in the United States. Reg Stud 45(6):773–789

    Article  Google Scholar 

  • Clark J, Bryson JR, Vanchan V (2015) Conclusion: regeneration economies—manufacturing as the next industrial revolution. In: Bryson JR, Clark J, Vanchan V (eds) Handbook of manufacturing industries in the world economy. Edward Elgar, New York

    Google Scholar 

  • Combes PP, Duranton G, Overman H (2005) Agglomeration and the adjustment of the spatial economy. Pap Reg Sci 84(3):311–49

    Article  Google Scholar 

  • Çağlar E, Kutsal Y (2011) Bölgesel Sanayi Politika Aracı Olarak özel Ekonomik Bölgeler: Türkiye’de Organize Sanayi Bölgelerinin Etkileri ve Yetkileri. 5. Bölgesel Kalkınma ve Yönetişim Sempozyumu Bildiriler Kitabı, TEPAV, Ankara, 187–202

  • Deichmann J, Karidis S, Sayek S (2003) Foreign direct investment in Turkey: regional determinants. Appl Econ 35(16):1767–1778

    Article  Google Scholar 

  • Dinçer B, Özaslan M, Kavasoğlu T (2003) İllerin ve Bölgelerin Sosyo-ekonomik Gelişmişlik Sıralaması. DPT, Yayın No: 2671, Ankara

  • Doğruel F (2006) Türkiye’de Bölgesel Politikalar, Değişen Mekan, Mekansal Süreçlere İlişkin Tartışma ve Araştırmalara Toplu Bakış: 1923–2003. (Ed) Ayda Eraydın, Dost Kitabevi, Ankara, 7–24

  • Duranton G, Puga D (2000) Diversity and specialisation in cities: why, where and when does it matter? Urban Stud 37(3):533–555

    Article  Google Scholar 

  • Elburz Z, Gezici F (2012) Regional development policies and industrial employment change in Turkey: a shift share analysis (1992–2008). 52. ERSA Congress, 21–25 August 2012, Bratislava

  • Ellison G, Glaeser EL (1997) Geographic concentration in U.S. manufacturing industries: a dartboard approach. J Polit Econ 105(5):889–927

    Article  Google Scholar 

  • Eraydın A (1999) Sanayinin Anadolu’ya Yaygınlaşması ve Son Dönemde Gelişen Yeni Sanayi Odakları. In: Baydar O (ed) 75 Yılda Çarklardan Chiplere. Tarih Vakfı Yayınları, Istanbul

  • Eraydın A (2002) Yeni Sanayi Odakları: Yerel Kalkınmanın Yeniden Kavramsallaştırılması (New Industrial Centers: Re-conceptualization of Local Economy), Ankara, ODTÜ

  • Eraydın A (2006) Günümüzde Mekana Yeniden ve Toplu Bir Şekilde Bakma Gereği, Değişen Mekan, Mekansal Süreçlere İlişkin Tartışma ve Araştırmalara Toplu Bakış: 1923–2003. (Ed) Eraydın, A., 164–195, Dost Kitabevi, Ankara

  • Filiztekin A, Barlo M, Kıbrıs Ö (2011) Türkiye’de Bölgesel Kalkınma: Farklılıklar, Bağıntılar ve Yeni Bir Mekanizma Tasarımı, TURKONFED, İstanbul

  • Fotheringham AS (1997) Trends in quantitative methods I: stressing the local. Progr Hum Geogr 21(1):88–96

    Article  Google Scholar 

  • Fotheringham AS, Brunsdon C, Charlton M (2002) Geographically weighted regression: the analysis of spatially varying relationships. Wiley, London

    Google Scholar 

  • Fujita M, Thisse JF (1996) Economics of agglomeration. J Jpn Int Econ 10:339–378

    Article  Google Scholar 

  • Fujita M, Thisse JF (2002) Economics of agglomeration. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Fujita M, Krugman P, Venables AJ (1999) The spatial economy: cities, regions and international trade. MIT Press, Cambridge

    Google Scholar 

  • Gönenç R, Röhn O, Koen V, Saygılı Ş (2012) Structural Reforms to Boost Turkey’s Long term Growth. OECD Economics Department Working Papers, No. 987, OECD Publishing. doi:10.1787/5k92smv7cnjl-en

  • Guimaraes P, Figueiredo O, Woodward D (2000) Agglomeration and the location of foreign direct investment in Portugal. J Urban Econ 47:115–135

    Article  Google Scholar 

  • Henderson JV (1986) Efficiency of resource usage and city size. J Urban Econ 19:47–70

    Article  Google Scholar 

  • Huang Y, Leung Y (2002) Analysing regional industrialisation in Jiangsu province using geographically weighted regression. J Geogr Syst 4(2):233–249

    Article  Google Scholar 

  • Imbs J, Montenegro C, Wacziag R (2012) Economic integration and structural change. Research Paper. http://www.ipc.umich.edu/integration_wacziarg.pdf. Accessed 12 Nov 2015

  • Jacobs J (1969) The economy of cities. Random House, New York

    Google Scholar 

  • Kaloudis A, Smith K (2005) Structural change, growth and innovation: the roles of medium and low tech industries, 1980–2002. In: Conference low-tech as misnomer: the role of non-research-intensive industries in the knowledge economy, Brussels

  • Karadağ M, Deliktaş E, Önder ÖA (2004) The effects of public capital on private sector performance in Turkish regional manufacturing industries. Eur Plan Stud 12(8):1145–1156

    Google Scholar 

  • Karahasan BC (2009) Financial liberalization and regional impacts on entrepreneurial behavior in Turkey. MPRA Paper No: 29814

  • Karahasan BC (2014) The spatial distribution of new firms: can peripheral areas escape from the curse of remoteness? Romanian J Reg Sci 8(2):1–28

    Google Scholar 

  • Karahasan BC (2015) Regional inequalities in Turkey: post 2001 Era. Marmara Üniversitesi, İ.İ.B Dergisi 37(1):125–147

  • Karahasan BC, Doğruel F, Doğruel S (2011) Market potential and regional disparities in Turkey. 51th ERSA Congress, Barcelona

  • Kazancık L (2007) Bölgesel Gelişme ve Sektör-Bölge Yığınlaşmaları. 2. Bölgesel Kalkınma ve Yönetişim Sempozyumu Bildiriler Kitabı. TEPAV, İzmir

  • Kaygalak İ, Reid N (2016) The geographical evolution of manufacturing and industrial policies in Turkey. Appl Geogr 70:37–48

    Article  Google Scholar 

  • Kharas H, Kohli H (2011) What is the middle income trap, why do countries fall into it, and how can it be avoided? Glob J Emerg Mark Econ III 3:281–289

    Google Scholar 

  • Kilicaslan Y, Taymaz E (2004) Structural change, productivity and competitiveness in MENA countries. In: ERF 11th annual conference, Beirut, Lebanon, December 14–16

  • Kıymalıoğlu Ü, Ayoğlu D (2006) Türk İmalat Sanayinde Yığılma Ekonomileri. Doğuş Üniversitesi Dergisi 7(2):198–209

  • Krugman PR (1980) Scale economies, product differentiation, and the pattern of trade. Am Econ Rev 70:950–959

    Google Scholar 

  • Krugman PR (1991) Increasing returns and economic geography. J Polit Econ 99:483–499

    Article  Google Scholar 

  • Lall S (2000) The technological structure and performance of developing country manufacturing exports, 1985–98. Oxf Dev Stud 28(3):337–69

    Article  Google Scholar 

  • Leung Y, Mei CL, Zhang WX (2000) Statistical tests for spatial nonstationarity based on the geographically weighted regression. Environ Plan A 32:9–32

    Article  Google Scholar 

  • Li H, Cheng S, Haynes KE (2011) The employment effects of new business formation: a regional perspective. Econ Dev Q 25:282–292

    Article  Google Scholar 

  • Malberg A, Maskell P (2002) The elusive concept of localization economies: towards a knowledge-based theory of spatial clustering. Environ Plan A 34:429–449

    Article  Google Scholar 

  • Martin P (1999) Public policies, regional inequalities and growth. J Public Policies 73:85–105

    Google Scholar 

  • McCann P (2001) Urban and regional economics. Oxford University Press Inc., New York

  • McMillan MS, Rodrik D (2011) Globalization, structural change and productivity growth. NBER Working Papers 17143, National Bureau of Economic Research, Inc

  • Mennis J (2006) Mapping the results of GWR. Cartogr J 43(2):171–179

    Article  Google Scholar 

  • Ministry of Economy (2014) Statistics Analysis. http://www.ekonomi.gov.tr/. Accessed 9 Apr 2014

  • Moretti E (2004) Human capital externalities in cities. In: Henderson JV, Thisse JF (eds) Handbook of regional and urban economics, vol 4. Elsevier Press, Amsterdam, pp 2243–2291

    Google Scholar 

  • Neary P (2001) Of hype and hyperbolas: introducing the new economic geography. J Econ Lit 39:536–561

    Article  Google Scholar 

  • Narjoko DA (2008) The determinants of industrial agglomeration in Indonesia. In: Ariff M (ed) Analyses of industrial agglomeration, production networks and FDI promotion. ERIA Research Project Report 2007-3, Chiba: IDE-JETRO, pp 10–63

  • Ottaviano G, Puga D (1998) Agglomeration in the global economy: a survey of the new economic geography. World Econ 21:707–731

    Article  Google Scholar 

  • Ottaviano G, Thisse JF (2003) Agglomeration and economic geography. In: Henderson V, Thisse JF (eds) Handbook of regional and urban economics. Elsevier, Amsterdam

    Google Scholar 

  • Parr JB (2002) Agglomeration economies: ambiguities and confusions. Environ Plan A 34:717–731

    Article  Google Scholar 

  • Pede VO, Florax R, Groot H (2011) Technological leadership and sectoral employment growth: a spatial econometric analysis for US counties. Working Paper 11-1, Purdue University

  • Puga D (2009) The magnitude and causes of agglomeration. J Reg Sci. 50th Anniversary Symposium

  • Pylak K, Majarek D (2014) Agglomeration economies: localisation or urbanisation? structural models for more and less developed European regions. In: 4th international conference on education, research and innovation, IPEDR. doi:10.7763/IPEDR.2014.V81.7

  • Rajesh Ray SN, Sen K, Kathuria V (2014) Does banking development matter for new firm creation in the informal sector? Evidence from India. Rev Dev Financ 4:38–49

    Article  Google Scholar 

  • Rodrik D (2013) Structural change, fundamentals, and growth: an overview. A paper that introduces a series of World Bank country studies on structural change. September 2013

  • Rosenthal SS, Strange WC (2001) The determinants of agglomeration. J Urban Econ 50:191–229

    Article  Google Scholar 

  • Rosenthal SS, Strange WC (2004) Evidence of nature and sources of agglomeration economies. In: Handbook of regional and urban economics, vol 4, pp 2119–2171

  • Rosenthal SS, Strange WC (2006) The micro-empirics of agglomeration economies. In: Arnott R, McMillen DP (eds) A companion of urban economics. Blackwell Publishing, Hoboken, pp 7–23

    Chapter  Google Scholar 

  • Simmie J (2005) Innovation and space: a critical review of the literature. Reg Stud 39(6):789–804

    Article  Google Scholar 

  • Tobler WR (1970) A computer movie simulating urban growth in the Detroit region. Econ Geogr 46(2):234–240

    Article  Google Scholar 

  • TurkStat (2014) Foreign trade statistics. http://www.turkstat.gov.tr/UstMenu.do?metod=temelist. Accessed 23 Apr 2014

  • Vogiatzoglou K, Tsekeris T (2011) Spatial agglomeration of manufacturing in Greece. Centre of Planning and Economic Research, Discussion Papers No: 122

  • Yang X, Xu J (2015) The mechanism and effect of financial promotion in the process of industrial agglomeration and cluster development in China: a discussion based on the economic literature. In: Zheng D (ed) Industrial engineering and manufacturing technology. CRS Press/Taylor and Francis, Boca Raton, pp 163–168

    Google Scholar 

  • Yeldan E, Taşcı K, Voyvoda E, Özsan ME (2012) Orta Gelir Tuzağından Çıkış: Hangi Türkiye? Cilt:1, Makro/Bölgesel/Sektörel Analiz, TÜRKONFED, İstanbul

  • Yu D (2006) Spatially varying development mechanisms in the greater beijing area: a geographically weighted regression investigation. Ann Reg Sci 40:173–190

    Article  Google Scholar 

  • Zhang X (2014) Comparative study about effects of financial resource agglomeation on regional economic growth in China. Int J Econ Financ 6(9):48–56

    Google Scholar 

  • Zhang X, Wang Y (2009) Financing cost, the formation of entrepreneurs and industrial agglomeration: a general analysis framework and comparative analysis based on different regions in China. J World Econ 9:15–26

    Google Scholar 

Download references

Acknowledgements

We   would like to thank to Istanbul Technical University Research Fund for supporting the project: Modelling the Industrial Location Factors in Turkey with Global and Local Regression Models.

Author information

Authors and Affiliations

  1. Department of Urban and Regional Planning, Istanbul Technical University, Istanbul, Turkey

    Ferhan Gezici & Burçin Yazgı Walsh

  2. Urban Strategy Partners, Istanbul, Turkey

    Sinem Metin Kacar

Authors
  1. Ferhan Gezici
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Burçin Yazgı Walsh
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sinem Metin Kacar
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ferhan Gezici.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Funding

This study was funded by ITU Research Fund.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Gezici, F., Walsh, B.Y. & Kacar, S.M. Regional and structural analysis of the manufacturing industry in Turkey. Ann Reg Sci 59, 209–230 (2017). https://doi.org/10.1007/s00168-017-0827-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00168-017-0827-4

JEL Classification

Search

Navigation