REGIONAL DEVELOPMENT

REGIONAL DISPARITIES IN TURKEY

Regional Development in Turkey

• This week in the light of some figures and numbers gathered from Turkish Statistical Institute (for 2012-2013) we will discuss the disparities in regional development of Turkey.

Districts of Turkey

LFPR

• Those who are over 16 and employed for pay and are actively seeking for work or waiting call back from previous employments are considered in the labour force.

• Labour force participation rate is defined as; Labour Force/Population.

• Let’s look at some regional figures regarding LFPR in Turkey.

OVERALL LFPR

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

10

20

30

40

50

60

70

80

Men

Women

LFPR for WOMEN

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

10

20

30

40

50

60

70

15-24 / Women

25-34 / Women

35-54 / Women

55+ Women

LFPR for MEN

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

20

40

60

80

100

120

15-24 / Men

25-34 / Men

35-54 / Men

55+ Men

INFLATION

• Now let us look at the inflation data for selected regions.

Istan

bul

Balikes

ir, Ç

anak

kale

Aydin, D

enizl

i, M

ugla

Bursa, E

skise

hir, B

ilecik

Ankara

Antalya,

Ispart

a, Burd

ur

Hatay, K

ahram

anm

aras,

Osman

iye

Kayse

ri, S

ivas

, Yozg

at

Kastam

onu, Çan

kiri,S

inop

Trabzo

n, Ord

u, Gire

sun, R

ize, A

rtvin

, Güm

üshan

e

Agri, K

ars, I

gdir, A

rdah

an

Van, M

us, Bitl

is, H

akkari

Sanliu

rfa, D

iyarb

akir

0.00

2.00

4.00

6.00

8.00

Overall

Istan

bul

Balikes

ir, Ç

anak

kale

Aydin, D

enizl

i, M

ugla

Bursa, E

skise

hir, B

ilecik

Ankara

Antalya,

Ispart

a, Burd

ur

Hatay, K

ahram

anm

aras,

Osman

iye

Kayse

ri, S

ivas

, Yozg

at

Kastam

onu, Çan

kiri,S

inop

Trabzo

n, Ord

u, Gire

sun, R

ize, A

rtvin

, Güm

üshan

e

Agri, K

ars, I

gdir, A

rdah

an

Van, M

us, Bitl

is, H

akkari

Sanliu

rfa, D

iyarb

akir

0

2

4

6

8

Housing and bills

Istan

bul

Balikes

ir, Ç

anak

kale

Aydin, D

enizl

i, M

ugla

Bursa, E

skise

hir, B

ilecik

Ankara

Antalya,

Ispart

a, Burd

ur

Hatay, K

ahram

anm

aras,

Osman

iye

Kayse

ri, S

ivas

, Yozg

at

Kastam

onu, Çan

kiri,S

inop

Trabzo

n, Ord

u, Gire

sun, R

ize, A

rtvin

, Güm

üshan

e

Agri, K

ars, I

gdir, A

rdah

an

Van, M

us, Bitl

is, H

akkari

Sanliu

rfa, D

iyarb

akir

0

4

8

12

Food and beverages

Istan

bul

Balikes

ir, Ç

anak

kale

Aydin, D

enizl

i, M

ugla

Bursa, E

skise

hir, B

ilecik

Ankara

Antalya,

Ispart

a, Burd

ur

Hatay, K

ahram

anm

aras,

Osman

iye

Kayse

ri, S

ivas

, Yozg

at

Kastam

onu, Çan

kiri,S

inop

Trabzo

n, Ord

u, Gire

sun, R

ize, A

rtvin

, Güm

üshan

e

Agri, K

ars, I

gdir, A

rdah

an

Van, M

us, Bitl

is, H

akkari

Sanliu

rfa, D

iyarb

akir

0

2

4

6

8

10

Clothing Apparel

Istan

bul

Balikes

ir, Ç

anak

kale

Aydin, D

enizl

i, M

ugla

Bursa, E

skise

hir, B

ilecik

Ankara

Antalya,

Ispart

a, Burd

ur

Hatay, K

ahram

anm

aras,

Osman

iye

Kayse

ri, S

ivas

, Yozg

at

Kastam

onu, Çan

kiri,S

inop

Trabzo

n, Ord

u, Gire

sun, R

ize, A

rtvin

, Güm

üshan

e

Agri, K

ars, I

gdir, A

rdah

an

Van, M

us, Bitl

is, H

akkari

Sanliu

rfa, D

iyarb

akir

0

4

8

12

16

Health Services

Istan

bul

Balikes

ir, Ç

anak

kale

Aydin, D

enizl

i, M

ugla

Bursa, E

skise

hir, B

ilecik

Ankara

Antalya,

Ispart

a, Burd

ur

Hatay, K

ahram

anm

aras,

Osman

iye

Kayse

ri, S

ivas

, Yozg

at

Kastam

onu, Çan

kiri,S

inop

Trabzo

n, Ord

u, Gire

sun, R

ize, A

rtvin

, Güm

üshan

e

Agri, K

ars, I

gdir, A

rdah

an

Van, M

us, Bitl

is, H

akkari

Sanliu

rfa, D

iyarb

akir

0

4

8

12

16

20

Education

HOUSEHOLD EXPENDITURE

• As you all know same levels of inflation might have different effects on different households depending on the main consumption items of each household.

• Let us now look into the details of household expenditure in selected regions of Turkey.

İstanbul

Food and beverages

Alcoholic beverages and tobacco

Clothing and Shoes

Housing and Rent

Furniture

Health Services

Transport

Communication

Entertainment

Education

Rest. And Hotels

Other

Ankara

Food and beverages

Alcoholic beverages and tobacco

Clothing and Shoes

Housing and Rent

Furniture

Health Services

Transport

Communication

Entertainment

Education

Rest. And Hotels

Other

İzmir

Food and beverages

Alcoholic beverages and tobacco

Clothing and Shoes

Housing and Rent

Furniture

Health Services

Transport

Communication

Entertainment

Education

Rest. And Hotels

Other

İstanbul

İzmir

Ankara

Antalya. Isparta. Burdur

Adana. Mersin

Zonguldak. Karabük. Bartın

Trabzon. Ordu. Giresun. Rize. Artvin. Gümüşhane

Erzurum. Erzincan. Bayburt

Ağrı. Kars. Iğdır. Ardahan

Şanlıurfa. Diyarbakır

Mardin. Batman. Şırnak. Siirt

0 5 10 15 20 25 30 35

Food and beverages

İstanbul

İzmir

Ankara

Antalya. Isparta. Burdur

Adana. Mersin

Zonguldak. Karabük. Bartın

Trabzon. Ordu. Giresun. Rize. Artvin. Gümüşhane

Erzurum. Erzincan. Bayburt

Ağrı. Kars. Iğdır. Ardahan

Şanlıurfa. Diyarbakır

Mardin. Batman. Şırnak. Siirt

0 1 2 3 4 5 6

Alcoholic beverages and tobacco

İstanbul

İzmir

Ankara

Antalya. Isparta. Burdur

Adana. Mersin

Zonguldak. Karabük. Bartın

Trabzon. Ordu. Giresun. Rize. Artvin. Gümüşhane

Erzurum. Erzincan. Bayburt

Ağrı. Kars. Iğdır. Ardahan

Şanlıurfa. Diyarbakır

Mardin. Batman. Şırnak. Siirt

0 0.5 1 1.5 2 2.5 3

Health Services

İstan

bul

İzmir

Ankara

Antaly

a. Isp

arta.

Burdu

r

Adana

. Mers

in

Zongu

ldak

. Kara

bük.

Bartın

Trabzo

n. Ord

u. Gire

sun.

Rize. A

rtvin

. Güm

üşha

ne

Erzuru

m. Erzi

ncan

. Bay

burt

Ağrı. K

ars. Iğ

dır. A

rdah

an

Şanl

ıurfa

. Diy

arbak

ır

Mard

in. B

atman

. Şırn

ak. S

iirt

0

0.5

1

1.5

2

2.5

3

3.5

4

Entertainment

Education

İstan

bul

İzmir

Ankara

Antaly

a. Isp

arta.

Burdu

r

Adana

. Mers

in

Zongu

ldak

. Kara

bük.

Bartın

Trabzo

n. Ord

u. Gire

sun.

Rize. A

rtvin

. Güm

üşha

ne

Erzuru

m. Erzi

ncan

. Bay

burt

Ağrı. K

ars. Iğ

dır. A

rdah

an

Şanl

ıurfa

. Diy

arbak

ır

Mard

in. B

atman

. Şırn

ak. S

iirt

0

1

2

3

4

5

6

7

8

Health Services

Rest. And Hotels

REGIONAL TRENDS IN MIGRATION

• Regional trends in migration is an important indicatior of the basic “North-South” difference in a country.

• Let us first consider the classical theory of migration and than look into interregional migration in Turkey.

Assumptions of the Classical Model

• Perfect competition in all markets• CRTS• No barriers to migration• Perfectly flexible factor prices• Homogeneous factors of production• Complete information about factor returns in

all regions

• The classical model suggests that there will be no wage differentials. However, evidence tells us that “wage differentials” concept is a fact.

• Futher migration cannot solely be attributed to wage differentials.

Too restrictive?• Labour is not homogeneous and the migration data includes

workers with different skills. • Migration data also includes those not in the labour market. • Low-wage regions may be high-wage locations for particular

industry sectors. • A substantial number are returning migrants moving back to

their region of origin. • Some move for individual advancement, whilst others move as

part of a career plan or because of company transfer policies (companies may move key workers around different plants).

• Wages are not perfectly flexible; “sticky wages”.• Positive costs are associated to migration.

• Let us now consider interregional migration patterns in Turkey.

Istanbul

West Marmara

Agean

East Marmara

West Anatolia

Mediterrenean

Middle Anatolia

West Blacksea

East Blacksea

Northeast Anatolia

Middleast Anatolia

Southeast Anatolia

-20

0

20

Net migration

Istanbul

West Marmara

Agean

East Marmara

West Anatolia

Mediterrenean

Middle Anatolia

West Blacksea

East Blacksea

Northeast Anatolia

Middleast Anatolia

Southeast Anatolia

-25 -20 -15 -10 -5 0 5 10

Net migration flows

Istan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iterre

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dlea

st Ana

tolia

Sout

heas

t Ana

tolia

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

In migration

Out migration

REGIONAL DISPARITIES IN SCHOOLING

• Schooling and education opportunities are also important drivers of regional development. Further such opportunities have important influences over migration as well.

• Let us now look at the number of schools, teachers and students in different regions of Turkey.

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Teacher

Student

İstanbul

West Marmara

Agean

East Marmara

West Anatolia

Mediterennean

Middle Anatolia

West Blacksea

East Blacksea

Northeast Anatolia

Middle East Anatolia

Southeast Anatolia

0 500000 1000000 1500000 2000000 2500000 3000000 3500000

Student

Student

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

2000

4000

6000

8000

10000

12000

Shcool

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

Preschool-student

Primary-student

Middle school-student

Technical-student

HEALTH SERVICES

• Finally we will look into regional disparities regarding health services in Turkey.

İstanbul

West Marmara

Agean

East Marmara

West Anatolia

Mediterennean

Middle Anatolia

West Blacksea

East Blacksea

Northeast Anatolia

Middle East Anatolia

Southeast Anatolia

0 50 100 150 200 250

Number of Hospitals

İstan

bul

Wes

t Marm

ara

Agean

East M

armara

Wes

t Ana

tolia

Med

iteren

nean

Mid

dle A

nato

lia

Wes

t Blac

ksea

East B

lacks

ea

North

east

Anato

lia

Mid

dle E

ast A

nato

lia

Sout

heas

t Ana

tolia

0

20

40

60

80

100

120

140

160

180

Ministry Hospitals

University Hospitals

Private hospitals

İstanbul

West Marmara

Agean

East Marmara

West Anatolia

Mediterennean

Middle Anatolia

West Blacksea

East Blacksea

Northeast Anatolia

Middle East Anatolia

Southeast Anatolia

0 5000 10000 15000 20000 25000 30000 35000

Number of Beds