Finance, human capital, and regional inequality in Türkiye: unveiling convergence and growth dynamics
ANNALS OF REGIONAL SCIENCE, cilt.75, sa.4, 2026 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 75 Sayı: 4
- Basım Tarihi: 2026
- Doi Numarası: 10.1007/s00168-026-01577-5
- Dergi Adı: ANNALS OF REGIONAL SCIENCE
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, Periodicals Index Online, ABI/INFORM, EconLit, Geobase, Political Science Complete, Public Affairs Index, Political Science Abstract (IPSA), Urban Studies Abstracts, Natural Science Collection (ProQuest), Social Science Premium Collection (ProQuest), Business Source Ultimate (EBSCO), Earth, Atmospheric, & Aquatic Science Collection (ProQuest), Materials Science & Engineering Collection (ProQuest), Pharma Collection (ProQuest), Political Science Database (ProQuest), Technology Collection (ProQuest)
- Recep Tayyip Erdoğan Üniversitesi Adresli: Evet
Özet
This paper analyzes the joint association of financial development and human capital with provincial income levels and convergence patterns in T & uuml;rkiye from 2013 to 2023. The empirical framework is based on an augmented neoclassical growth (NCG) specification and is estimated for a balanced panel of 81 provinces. The methodology proceeds in three stages. First, a multidimensional Financial Development Index (FDI) is constructed by principal component analysis (PCA) and assessed using Kaiser-Meyer-Olkin and Bartlett diagnostics. Second, the determinants of the logarithm of real GDP per capita are estimated using two-step System GMM with Windmeijer-corrected standard errors (Windmeijer ), collapsed instruments, and standard diagnostic tests (AR(1), AR(2), Hansen, and difference-in-Hansen). The dynamic equation is estimated in income levels; its partial-adjustment interpretation is obtained algebraically by subtracting lagged income from both sides and should not be confused with the first-differencing transformation used internally by System GMM to remove province-specific effects. Because consistent province-level institutional-quality data are unavailable for the study period, province fixed effects and time dummies are used to absorb time-invariant provincial heterogeneity and common macroeconomic shocks, while institutional mechanisms are treated as contextual interpretation rather than directly estimated channels. Third, Phillips and Sul's () log-t procedure is used to test for nationwide convergence and to identify convergence clubs. The estimates indicate that financial development and human capital are positively associated with provincial income, and their interaction is positive and statistically significant, consistent with a complementarity interpretation. The log-t results reject nationwide convergence and identify six convergence clubs with a pronounced east-west pattern. Sensitivity checks using alternative human-capital proxies, alternative financial-development measures, and alternative club-merging criteria preserve the qualitative conclusions, although the results should be read as conditional associations rather than causal effects. Given the non-spatial empirical design, geographical concentration and possible interregional spillover mechanisms are discussed only as background and interpretation, not as effects directly estimated by the model.