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Yayın Spatial patterns of the Turkish manufacturing industry in the context of economic integration : an analysis for the post 1980 period(Işık Üniversitesi, 2007) Falcıoğlu, Pınar; Akgüngör, Emine Sedef; Işık Üniversitesi, Sosyal Bilimler Enstitüsü, Çağdaş İşletme Yönetimi Doktora ProgramıThe dynamics of industrial agglomeration across the regions and the reasons for such agglomeration have been the focus of interest particularly in exploring the effects of economic integration of regions on the spatial distribution of economic activity. In this context, following the predictions of the literature on New Economic Geography, Turkey's integration with the European Union as a candidate member is a likely cause of changes in spatial concentration patterns of the economic activity over the years. The major objective of the study is to complement the findings of the studies on industrial agglomeration in Turkey's manufacturing industry by exploring whether regional specialization and geographical concentration patterns have changed over time and to expose the driving forces of geographical concentration in Turkey's manufacturing industry, particularly during Turkey's economic integration process with the European Union under the customs union established in 1996. Geographical concentration and regional specialization are measured by GINI index for NUTS 2 regions at the 4-digit level for the years between 1980 and 2001. To investigate which variables determine geographical concentration, the systematic relation between the characteristics of the industry and geographical concentration is tested. A regression equation is estimated, where the dependent variable is GINI concentration index, the independent and control variables are the variables that represent different determinants of agglomeration identified in the competing theories. The major finding of the study is that Turkey's manufacturing industry has a tendency for regional specialization and geographical concentration. Increase in the average values for regional specialization and geographical concentration support the predictions developed by Krugman that regions become more specialized and industries become more concentrated with economic integration. As for the answer to which variables determine geographical concentration, the analysis supports the the predictions of New Trade Theory which states that the firms tend to cluster in regions where there are economies of scale. The findings also support that economic integration with the EU has been a significant factor in determining the geographical concentration of industries.
