EXPORT PERFORMANCE AND INCOME LEVEL RELATIONSHIP IN 81 PROVINCES OF TURKEY: PANEL DATA ANALYSIS

Adem KARAKAŞ

Rapid transformation and increasing competition in the global economic structure directly concern the economic growth structures of countries. In line with the increasing competition, the importance of competitiveness of companies, sectors and a country's economy as a whole increases. Especially in the economic plane that was created after World War II, foreign trade and macroeconomic magnitudes which were shaped accordingly have affected production processes all over the world. It can be observed that developing countries adopt an export-oriented economic structure in order to achieve sustainable economic growth. The ever-increasing transaction volume in world economy and impetus in global trade provide an advantage for countries that closely follow and adapt to these developments, whereas these factors work against other countries. In an economy not based on its own natural resources, achieving an advantageous position in foreign trade depends on factors such as the increase in production in the real sector-manufacturing industry, production costs, economic income level of importing countries and exchange rate developments. From the perspective of developing countries such as Turkey, growth in the country's economy is made due to increased exports. However, if production is not distributed throughout a country, and certain cities and regions make most part of the production, this causes an unhealthy distribution of income within this country. This is also the case in Turkey. The study is testing the relationship between the contribution of 81 provinces in Turkey and level of shares they receive from the national income. As a result of the analysis based on the data of total exports between 2004 and 2018, it is revealed that there is a meaningful relationship between the export of provinces and per capita national income data variables.

Keywords: Economic Growth, Export, Income, Panel Data Analysis, Export Performances of Provinces.