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Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?

Year 2016, Volume: 8 Issue: 2, 42 - 55, 01.04.2016

Kahraman Kalyoncu

Abstract

There is enormous disparity in per capita output across Turkish provinces. The unfortunate province has per-capita incomes
that are less than 10% of per capita incomes in the richest province at the year of 1997. Why such thing materializes? On an
accounting origin, our investigation demonstrates that differences in electric consumption to educational attainment ratio can
only somewhat explain the disparity in per capita output, however it is better than the MRW (1992) approaches for this data —
we discover a great amount of variation in the level of the Solow residual across provinces. At a deeper level, the differences in
physical to human capital ratio accumulation, productivity, and therefore output per capita may not be driven by differences in
institutions and government policies. 

Keywords

Economic Growth Human Capital Physical Capital and Complementarities

References

  • Barro, Robert J., and Jong wha Lee, (1993) "International Comparisons of Educational Attainment,"’ Journal of Monetary Economics, XXXII, 363-394. Barro, Robert J., (1991) "Economic Growth in a Cross Section of Countries," Quarterly Journal of Economics, CVI, 407-443. Barro, Robert J., (1997) Determinants of Economic Growth: A Cross-Country Empirical Study (Cambridge, MA: MIT Press. Barro, Robert J., and Xavier Sala-i-Martin, (1992) "Convergence," Journal of Political Economy, C, 223-251. Barro, Robert J., and Xavier Sala-i-Martin, "Economic Growth,"McGaw Hill inc., 1995. Barro, Robert J., and Xavier Sala-i-Martin, (1995) "Technological Diffusion, Convergence, and Growth," NBER Working Paper No. 5151. Baumol, William J., (1990) "Entrepreneurship: Productive, Unproductive, and Destruc­tive," Journal of Political Economy, XCVIII, 893-921. Bulutay, Tuncer, “Yeni Büyüme Kuramları ve Büyüme, Kalkınma Konusuda Diğer Bazı Yaklaşımlar” Devlet Planlama Teşkilatı, ISBN 975-19-0986-4, 1995. Christensen, Laurits R., Dianne Cummings, and Dale W. Jorgenson, "Relative Productivity Levels, 1947-1973," European Economic Review, XVI (1981), 61-94. DPT: Devlet Planlama Teşkilatı (2003a) “İllerin ve Bölgelerin Sosyo-Ekonomik Gelişmiklik Sıralaması Araştırması” yayın No DPT:2671. Erk, Nejat., Çabuk, H. Altan. and Ateş, Sanlı (1998), Long-Run Growth and Physical Capital-Human Capital Concentration, ERC/METU METU International Conference in Economics II, Ankara, Turkey, Middle East Technical University Greif, Avner, and Eugene Kandel, (1995) "Contract Enforcement Institutions: Historical Perspective and Current Status in Russia," in Edward P. Lazear, ed., Economic Transition in Eastern Europe and Russia: Realities of Reform (Stanford, CA: Hoover Institution Press,. Hall, Robert E., and Charles I. Jones, (1999) " Why Do Some Countries Produce So Much More Output Per Capita Than Others?," The Quarterly Journal of Economics, February, 83- 116. Hall, Robert E., and Charles I. Jones, (1996) "The Productivity of Nations," NBER Working Paper No. 5812. Jones, Charles . I. “Introduction to Economic Growth” W.W. Norton&Company Inc. (1998). Kalyoncu, K (2008) “An Assessment Of The Effect Of Health AND Nutritional Quality On Capita Effort And Economic Growth Through Physical And Human Capital: CrossCountry And Turkish Evidence, Ph.D Thesis. www.metu.edu.tr Krueger, Anne, (1974) "The Political Economy of the RentSeeking Society," American Economic Review, LXIV, 291-303. Lee, J-W., (2007) “Economic Growth and Human Development in the Republic of Korea, 1945-1992” http://gd.tuwien.ac.at/soc/undp/oc24aa.htm. Lucas, R.E. (1988), “On The Mechanics of Economic Development” Journal of Monetary Economics, 22: 3-42. Lucas, E. Robert, JR, (1990), "Why Doesn't Capital Flow from Rich to Poor Countries?" The American Economic Review, May, 92-96. Lucas, Robert .E. (1988), “On The Mechanics of Economic Development” Journal of Monetary Economics, 22: 3-42. Mankiw, N. Gregory, David Romer, and David Weil, (1992) "A Contribution to the Empirics of Economic Growth," Quarterly Journal of Economics, CVII ,407-438. North, Douglass C, Institutions, Institutional Change, and Economic Performance (Cambridge: Cambridge University Press, 1990). Olson, Mancur, The Logic of Collective Action (Cambridge, UK: Cambridge University Press, 1965). Olson, Mancur, The Rise and Decline of Nations (New Haven, CT: Yale University Press,1982). Ramcharan, R. (2004) “Higher or Basic Education? The Composition of Human Capital and Economic Development” IMF Staff Papers Vol. 51, No. 2, 2004 International Monetary Fund. Romer, Paul M., (1986) “Increasing Returns and Long-Run Growth”, Journal of Political Economy, 94 (5), 1002-1037. Romer, Paul M., "Endogenous Technological Change," Journal of Political Economy, XCVIII (1990), S71-S102. Sohn, Byungdoo, (2000), “Health, Nutrition and Economic Growth” Ph.D theses, Brown University, UMI Microform:9987838. Solow, Robert M., (1957) "Technical Change and the Aggregate Production Function," Review of Economics and Statistics, XXXIX, 312-320. Turnovsky, S.J. and S. Chatterjee (2002). “To Spend the U.S. Government Surplus or to Increase the Deficit? A Numerical Analysis of the Policy Options.” Journal of the Japanese and International Economies 16, no. 4: 405-435. Weingast, Barry R., (1995) "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," Journal of Law, Economics, and Organizational, 1-31. Zamao, J. A. C. (2000) “Investment in Health and Economic Growth: a Perspective from Latin America and the Caribbean” 35 Meeting of the Advisory Committee on Health Research, July, Pan American Health Organization, Division of Health and Human Development, Washington, http://www.paho.org/English/HDP/HDR/ACHR-00-08.pdf

Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?

Year 2016, Volume: 8 Issue: 2, 42 - 55, 01.04.2016

Kahraman Kalyoncu

Abstract

There is enormous disparity in per capita output across Turkish provinces. The unfortunate province has per-capita incomes
that are less than 10% of per capita incomes in the richest province at the year of 1997. Why such thing materializes? On an
accounting origin, our investigation demonstrates that differences in electric consumption to educational attainment ratio can
only somewhat explain the disparity in per capita output, however it is better than the MRW (1992) approaches for this data —
we discover a great amount of variation in the level of the Solow residual across provinces. At a deeper level, the differences in
physical to human capital ratio accumulation, productivity, and therefore output per capita may not be driven by differences in
institutions and government policies. 

Keywords

Economic Growth Human Capital Physical Capital and Complementarities

References

  • Barro, Robert J., and Jong wha Lee, (1993) "International Comparisons of Educational Attainment,"’ Journal of Monetary Economics, XXXII, 363-394. Barro, Robert J., (1991) "Economic Growth in a Cross Section of Countries," Quarterly Journal of Economics, CVI, 407-443. Barro, Robert J., (1997) Determinants of Economic Growth: A Cross-Country Empirical Study (Cambridge, MA: MIT Press. Barro, Robert J., and Xavier Sala-i-Martin, (1992) "Convergence," Journal of Political Economy, C, 223-251. Barro, Robert J., and Xavier Sala-i-Martin, "Economic Growth,"McGaw Hill inc., 1995. Barro, Robert J., and Xavier Sala-i-Martin, (1995) "Technological Diffusion, Convergence, and Growth," NBER Working Paper No. 5151. Baumol, William J., (1990) "Entrepreneurship: Productive, Unproductive, and Destruc­tive," Journal of Political Economy, XCVIII, 893-921. Bulutay, Tuncer, “Yeni Büyüme Kuramları ve Büyüme, Kalkınma Konusuda Diğer Bazı Yaklaşımlar” Devlet Planlama Teşkilatı, ISBN 975-19-0986-4, 1995. Christensen, Laurits R., Dianne Cummings, and Dale W. Jorgenson, "Relative Productivity Levels, 1947-1973," European Economic Review, XVI (1981), 61-94. DPT: Devlet Planlama Teşkilatı (2003a) “İllerin ve Bölgelerin Sosyo-Ekonomik Gelişmiklik Sıralaması Araştırması” yayın No DPT:2671. Erk, Nejat., Çabuk, H. Altan. and Ateş, Sanlı (1998), Long-Run Growth and Physical Capital-Human Capital Concentration, ERC/METU METU International Conference in Economics II, Ankara, Turkey, Middle East Technical University Greif, Avner, and Eugene Kandel, (1995) "Contract Enforcement Institutions: Historical Perspective and Current Status in Russia," in Edward P. Lazear, ed., Economic Transition in Eastern Europe and Russia: Realities of Reform (Stanford, CA: Hoover Institution Press,. Hall, Robert E., and Charles I. Jones, (1999) " Why Do Some Countries Produce So Much More Output Per Capita Than Others?," The Quarterly Journal of Economics, February, 83- 116. Hall, Robert E., and Charles I. Jones, (1996) "The Productivity of Nations," NBER Working Paper No. 5812. Jones, Charles . I. “Introduction to Economic Growth” W.W. Norton&Company Inc. (1998). Kalyoncu, K (2008) “An Assessment Of The Effect Of Health AND Nutritional Quality On Capita Effort And Economic Growth Through Physical And Human Capital: CrossCountry And Turkish Evidence, Ph.D Thesis. www.metu.edu.tr Krueger, Anne, (1974) "The Political Economy of the RentSeeking Society," American Economic Review, LXIV, 291-303. Lee, J-W., (2007) “Economic Growth and Human Development in the Republic of Korea, 1945-1992” http://gd.tuwien.ac.at/soc/undp/oc24aa.htm. Lucas, R.E. (1988), “On The Mechanics of Economic Development” Journal of Monetary Economics, 22: 3-42. Lucas, E. Robert, JR, (1990), "Why Doesn't Capital Flow from Rich to Poor Countries?" The American Economic Review, May, 92-96. Lucas, Robert .E. (1988), “On The Mechanics of Economic Development” Journal of Monetary Economics, 22: 3-42. Mankiw, N. Gregory, David Romer, and David Weil, (1992) "A Contribution to the Empirics of Economic Growth," Quarterly Journal of Economics, CVII ,407-438. North, Douglass C, Institutions, Institutional Change, and Economic Performance (Cambridge: Cambridge University Press, 1990). Olson, Mancur, The Logic of Collective Action (Cambridge, UK: Cambridge University Press, 1965). Olson, Mancur, The Rise and Decline of Nations (New Haven, CT: Yale University Press,1982). Ramcharan, R. (2004) “Higher or Basic Education? The Composition of Human Capital and Economic Development” IMF Staff Papers Vol. 51, No. 2, 2004 International Monetary Fund. Romer, Paul M., (1986) “Increasing Returns and Long-Run Growth”, Journal of Political Economy, 94 (5), 1002-1037. Romer, Paul M., "Endogenous Technological Change," Journal of Political Economy, XCVIII (1990), S71-S102. Sohn, Byungdoo, (2000), “Health, Nutrition and Economic Growth” Ph.D theses, Brown University, UMI Microform:9987838. Solow, Robert M., (1957) "Technical Change and the Aggregate Production Function," Review of Economics and Statistics, XXXIX, 312-320. Turnovsky, S.J. and S. Chatterjee (2002). “To Spend the U.S. Government Surplus or to Increase the Deficit? A Numerical Analysis of the Policy Options.” Journal of the Japanese and International Economies 16, no. 4: 405-435. Weingast, Barry R., (1995) "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," Journal of Law, Economics, and Organizational, 1-31. Zamao, J. A. C. (2000) “Investment in Health and Economic Growth: a Perspective from Latin America and the Caribbean” 35 Meeting of the Advisory Committee on Health Research, July, Pan American Health Organization, Division of Health and Human Development, Washington, http://www.paho.org/English/HDP/HDR/ACHR-00-08.pdf
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Details

Journal Section Review Article
Authors

Kahraman Kalyoncu

Publication Date April 1, 2016
Published in Issue Year 2016Volume: 8 Issue: 2

Cite

APA Kalyoncu, K. (2016). Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?. Aksaray Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 8(2), 42-55.
AMA Kalyoncu K. Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?. Journal of ASU FEAS. April 2016;8(2):42-55.
Chicago Kalyoncu, Kahraman. “Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?”. Aksaray Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi 8, no. 2 (April 2016): 42-55.
EndNote Kalyoncu K (April 1, 2016) Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?. Aksaray Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 8 2 42–55.
IEEE K. Kalyoncu, “Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?”, Journal of ASU FEAS, vol. 8, no. 2, pp. 42–55, 2016.
ISNAD Kalyoncu, Kahraman. “Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?”. Aksaray Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 8/2 (April 2016), 42-55.
JAMA Kalyoncu K. Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?. Journal of ASU FEAS. 2016;8:42–55.
MLA Kalyoncu, Kahraman. “Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?”. Aksaray Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, vol. 8, no. 2, 2016, pp. 42-55.
Vancouver Kalyoncu K. Why Do Some Turkish Provinces Generate So Much More Per-Capita Income Than Others?. Journal of ASU FEAS. 2016;8(2):42-55.
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