Localization and specialization tendency of manufacturing in Turkey

Abstract

This study aims to define two indexes named as coefficient of localization and specialization coefficient, and to analyze recent changes in geographical dimension of manufacturing in Turkey via deploying those indexes. While localization of manufacturing between 1992 and 2016 is analyzed with former index, the second one is used for analyzing specialization tendency of each industry and total manufacturing. The findings of study point to clear increase in concentration and localization tendency of manufacturing. Respective tendency verifies assumptions of new economic geography theory and highlights deepening regional disparities between existent east and west regions. It reveals regional industrial diversification at province scale is not the fact in Turkey. Despite the fact that traditional industrial provinces are unique geographical unites in terms of sectoral diversification, new industrialized provinces in the country seem like not able to create industrial diversification and specialized in only a few industries.