Concentration and convergence: Regional productivity in Türkiye, 1950–2020

This paper presents a comprehensive long-run analysis of regional productivity convergence in Türkiye using a novel dataset combining newly compiled employment estimates with recent output estimates. The seven-decade analysis reveals substantial productivity convergence driven by labour reallocation away from agriculture alongside within-industry convergence. A distinctive pattern emerges: aggregate economic concentration proceeded together with productivity convergence, with distinct regional clusters forming. Furthermore, shift-share decomposition shows industry-mix effects persistently explain significant regional productivity variation, reflecting sustained agriculture-other sectors productivity differences, with western regions enjoying both favourable sectoral composition and regional competitiveness advantages. From a policy perspective, agricultural productivity improvements offer significant potential for reducing regional disparities.