Spatial Econometric Analysis of the Determinants of Location in Turkish Manufacturing Industry
24 Pages Posted: 17 Nov 2009
Date Written: April 17, 2009
This paper examines the determinants of location within the Turkish manufacturing industry with respect to spatial interaction. Extending on previous studies on Turkey, this paper is the first attempt to model the location decision incorporating both region-specific and sector-specific factors. The econometric analysis is based on the Moran’s I values following Anselin (1988). The estimation results of the Spatial Lag Model indicate a significant spatial dependence of the location decision for the Turkish manufacturing industry. The most significant determinants of the location decision are found out to be the population density, share of manufacturing in total employment, percentage of people with university degrees and the average January temperature.
Keywords: Spatial correlation, Location, Regional Concentration, Manufacturing Sector
JEL Classification: R12
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