Agglomeration patterns in Turkish manufacturing industries

The main purpose of this thesis is to examine the agglomeration phenomenon in Turkish manufacturing industries in depth. Chapter 1 presents an overall discussion of the thesis. Chapter 2; examines the theoretical background of the agglomeration phenomenon, while the structure of Turkish manufacturing sector is examined in Chapter 3. Chapter 4 investigates the degree of agglomeration in Turkish manufacturing industries. For this purpose, several specialization and concentration indexes are examined and also calculated, however the Ellison and Glaeser index of agglomeration is used throughout this thesis, for reasons described in chapter 4. The results from the Ellison and Glaeser index indicate a declining trend in agglomeration for Turkish manufacturing industries. After investigating the degree of agglomeration, the main theory that describes agglomeration in Turkish manufacturing industries is also investigated in Chapter 5. For this purpose several econometric methods are employed and the results indicate that the Ricardian model of technological differences is the main theory that explains agglomeration patterns in Turkish manufacturing industries. Chapter 6 investigates the relationship between agglomeration and entry-exit. For such investigation a dynamic model, count data models and seemingly unrelated regression techniques are employed. The results from chapter 6 indicate that firms in Turkish manufacturing industries do not want to locate in agglomerated regions. Chapter 7 investigates the relationship between Total Factor Productivity (TFP) and agglomeration. For such analysis, fixed effect method and dynamic estimation methodologies are employed. The results indicate that firms that are located in agglomerated regions in Turkish manufacturing industries face decreasing productivity levels. Finally chapter 8 presents an overall conclusion for the thesis.