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.