Spatial Concentration and Regional Diversification of Public Expenditures: The Case of Turkey

Authors : Süleyman ÖZCAN, Güner TUNCER

Pages : 185-198

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Publication Date : 2015-01-31

Article Type : Research Paper

Abstract :Public expenditure is one of the most important variables on determining both the share of public sector in an economy and the size of national income. Explaining the distribution of public expenditures across the country is as equally important as determining its relationship with other variables. The distribution of public expenditures may vary in terms of regional and functional classifications. The differences can provide information about the policies favored by the government. The aim of this paper is to analyze the spatial concentration and regional diversification of functional public expenditures in Turkey. For the purpose, Herfindahl–Hirschman and Duranton–Puga indices are generated for the period of 2004 and 2011. Statistical results indicate that, over the sample period, the government carried out a spatial concenration on housing and social welfare services expenditures. In addition, Bursa emerges as the province where regional diversification is highest.
Keywords : Functional public expenditures, spatial concentration, Herfindahl Hirschman Index, Regional diversification, Duranton Puga index