Regional Productivity Convergence in Turkey: A Provincial-Level Beta Analysis

This study examines the convergence dynamics of provincial-level labor productivity in Turkey over the period 2006-2024. Using 11.92 million firm-year observations drawn from the Entrepreneurship Information System (GBS), a beta convergence regression is estimated across 81 provinces. The findings point to a statistically significant convergence process (β=-0.0384, p<0.0001); the annual convergence rate is calculated at 6.53%, implying a half-life of approximately 10.6 years. This rate is more than three times the roughly 2% annual convergence rate established in the classic work of Barro and Sala-i-Martin (1992) and widely accepted in the literature. The finding indicates that productivity gaps across provinces in Turkey are closing at a relatively rapid pace, though this speed does not imply that regional inequality has been eliminated. The study presents a descriptive convergence analysis and does not claim a causal mechanism.