Topics in Middle Eastern and North African Economies

Document Type

Article

Publication Date

5-1-2020

Abstract

Historical evolution of industrial economic activity has been central to economic policy in developing economies. An emerging line of literature discussed that, tendency for falling manufacturing based industrial economic activity can signal a problem for developing countries. Evidence shows that developing countries' growth rates fall below their potential growth and unemployment rates strikes to relatively high levels if deindustrialization pattern is premature and early unlike the experiences observed for advanced countries. Given continuous structural change and sizable regional disparities in Turkey, we examine the regional dimension and discuss the influence of regional deindustrialization for convergence of Turkish regions. Our analyses from conditional Markov Chain analyses show that manufacturing employment influences regional income distribution, as chances to move to higher income classes is conditional on the extent of regional manufacturing employment. These results show that geographical distribution of (de)industrialization is non-random in Turkey, rather a historical choice of economic policy.

Journal Title

Topics in Middle Eastern and North African Economies

ISSN

2334-282X

Publisher

Middle East Economic Association and Loyola University Chicago

Volume

22

Issue

1

Comments

Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

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