Regional and structural analysis of the manufacturing industry in Turkey

The geography of the manufacturing industry has been changing due to technological development, flexible production and reducing transportation costs regarding the new specialization and distribution process in the world. While manufacturing production has been moving from developed countries to the relatively less developed ones, which have become the emerging economies over the last two decades, the concentration of these activities within the countries has always received the attention of researchers. On the other hand, not only the geographical shift but also structural shifts have increasingly been an important phenomenon of the twenty-first century. It is known that the level of technology and innovation makes a significant contribution to regional economic development. Determinants of manufacturing agglomerations have created a wide literature based on different empirical studies. Moreover the structural changes of industry need to be investigated regarding the spatial agglomerations. The aim of this paper is to explore how the factors of manufacturing agglomerations have differentiated due to the technological level across the country. Furthermore, we assume that the agglomeration mechanism is likely to vary across the space. Therefore, we have run both global and local regression models based on the employment data of the 81 NUTS III level regions (provinces) of Turkey in 2012. The results point out that the factors of agglomerations are different in the east and west provinces, while GWR has significantly improved global results