Abstract:

Summary: In this study; for the 26 regions included in the IBBS Level 2 classification, the validity of the interregional income proximity hypothesis and the effects of interregional inflation proximity on it; using the annual data of the 2004-2016 period, with the help of 22 different models, the absolute beta proximity, the conditional beta proximity, the sigma proximity and the variation rate approaches were analyzed. The stagnation of the series; LLC, IPS and Hadri panel units were tested with root tests and the series were found to be I(1) . The presence of causality relationships between the series; Granger and Dumitrescu and Hurlin panel have been studied by causality tests. The existence of the matching relationship between the series included in the Models has been tested by the Kao panel matching test. The combination rates in the models are predicted by the PDOLS method. In the analysis of income proximity; in the period 2004-2016 in Turkey the absolute income proximity hypothesis is not valid, and the conditional income proximity hypothesis is valid. It has been found that the regions are located in the west of the country and that inflation increases the national income per person and the proximity between the regions, and that their public spending has an immense or negative impact. The employment in the agricultural sector and the income obtained from this sector has affected economic growth and inter-regional income proximity, and the services and industrial sectors have a positive contribution to this sector. External trade, the training of the labour force and the number of qualified healthcare staff have a positive impact on the country’s per capita income and the inter-regional income approach, while climate change has been found to be harmful in this area. According to the sigma proximity and variation ratio approaches made for income, it was also seen that in the period 2004-2016 in Turkey there was the proximity of income between regions.

Abstract:

Abstract: In this study, existence of inflation convergence among 26 regions included in nuts Level 2 at 2004:M01-2016:M12 period is analyzed by 6 different models. Stationarity of the series is tested by LLC, IPS and Hadri panel unit root tests and the series are found to be I(1). Existence of causality relationships between the series are examined with Granger and Dumitrescu and Hurlin panel causality tests. Existence of the cointegration relationship between the series in the models is tested with Kao panel cointegration test. The cointegration coefficients in the models are estimated by PDOLS method. In the analysis conducted for income convergence; hypothesis of absolute income convergence between regions in Turkey is not valid for 2004-2016 period, while the conditional income convergence hypothesis is determined to be valid. It is estimated that interregional convergence and per capita income are increased by the inflation and whether the regions are located in the west side of the country while it is seen that public spending have insignificant or negative impact. It is determined that employment in the agricultural sector and the income generated from this sector damage economic growth and income convergence between the regions while services and industrial sectors have positive contributions in this field. While foreign trade, labor force training and the number of qualified health personnel positively affect the per capita national income and interregional income convergence of the regions, climate variables are found to be detrimental in this area. According to sigma convergence and variation coefficient approaches conducted for income, it is also seen that interregional income convergence is valid for 2004-2016 period in Turkey.

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