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Scientific and Professional papers: Economics and Business

Vol. 19 No. 2 (2024): South East European Journal of Economics and Business

PORTER-TYPE REGIONAL AGGLOMERATIONS, EXPORT PERFORMANCE, AND INCLUSIVE REGIONAL POLICY: AN EMPIRICAL ASSESSMENT OF TURKISH MANUFACTURING SECTOR

Submitted
July 24, 2024
Published
December 1, 2024

Abstract

This study aims to evaluate the medium-term impact of regional agglomerations in the manufacturing sector of Turkey on export performance. To this end, we identified Porter-type agglomerations in ISIC two-digit manufacturing sectors for 58 NUTS-3 regions and the 2008-2019 period. In the empirical analysis section, we used a two-way fixed effects panel data model to analyze the effects of these agglomerations on sectoral export performance. The findings indicate that the advantages of Porter-type agglomeration are limited to
certain mid-tech sectors. Also, labor-intensive low-tech manufacturing sectors are found to have no agglomeration advantages in export performance compared to mid-tech sectors. The findings indicate a technology policy need and an inclusive smart specialization strategy (3S) to enhance productivity and export competitiveness.