KENTSEL EKONOMĞK BÜYÜMEDE SERBEST BÖLGELER: POLĞTĞK VEYA EKONOMĞK TERCĞH MĞ?

In this study, it has been examined the affects of Free Zones on local economic growth in Turkey. Contributions of Free Zones on economies of provinces where they have been established have been estimated by considering available data of 72 provinces. The affects of private sector investments, public investments, public current and infrastructure expenditures, geographical location and the rate of population growth on economic growth of provinces have been studied using endogenous growth equation. According to results of analysis, geographical location and credits have statistically significant and positive affects on economic growth, while initial per capita income of provinces have statistically significant and negative affects which indicate income convergence among provinces. Coefficient of dummy variable used for Free Zones has statistically insignificant and positive sign. When the dummy of Free Zones has been reorganized by considering whether provinces has seaport or not, results of estimation indicate that Free Zones have positive affects on economic growth of provinces which have seaport. Consequently, it can be said that the decision of locational choice of Free Zone has been made using political benefits than economic feasibilities. [ABSTRACT FROM AUTHOR]