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Firm-Level Regional Inequality in Turkey: A Sigma Convergence Analysis, 2006-2024

Authors: Borluk, Sinan;

Firm-Level Regional Inequality in Turkey: A Sigma Convergence Analysis, 2006-2024

Abstract

This paper examines regional inequality dynamics in Turkey over the 2006-2024 period using firmlevel administrative data from the Entrepreneur Information System (GBS). Drawing on 22.85 million firm-year observations across 81 provinces and 19 years, we apply sigma convergence analysis at three spatial scales: provincial (81 NUTS-3 units), regional (26 NUTS-2 units), and within-region (firm-level dispersion inside each region). Net sales and gross value added are deflated using producer price indices (base year 2006). The findings reveal a three-phase pattern: convergence during 2006-2012 (-20.8% net sales,-9.5% gross value added), near-stagnation during 2013-2019, and sharp divergence after 2020 (+32.6% net sales, +25.4% gross value added). Crisis-exclusion tests confirm that some convergence episodes partially reflect deterioration rather than genuine catch-up. Withinregion analysis identifies club convergence: firms converge inside all 26 NUTS-2 regions for net sales, yet between-region dispersion widened by 38% over the full period. No locomotive province is identified at the national level. The results suggest polarization rather than systemic convergence.

Keywords

sigma convergence, regional inequality, firm-level data, Turkey, club convergence, crisis effect, R12, O18, D63, C43

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
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Average