Regional development problematique in Turkey and specific policy proposals to regions

Study aiming effective and specific political tools to Turkey's sub-regions in terms of their requirements and competitive advantages providing sustainable and balance development process examines political and institutional dynamics which are effect region's growth performances potentially as well as economic dynamics. Accordingly, in macro level analysis alternative Dynamic Panel Models (System GMM) and in micro level analysis alternative Fixed Effects Panel Models with Heterogeneity β determined to specific political priorities of regions including 2005-2014 period and Turkey's NUT's-2 regions was estimated. The macro-findings indicate that "political pluralism (democracy)" effects regions growth performance negatively at first step, but as increase pluralism degree, this effect turns opposite side (positive) in parallel with Compatibility School arguments; and also, there isn't any statistically significant relationship between "political instability" measured by the number of died and injured people per number of terrorist attacks, "regional incentives" and regions' growth performance. Also, there isn't any statistically significant relationship between higher educatiın and region's growth performances. On the other hand, according to findings of Fixed Effects Panel Models with Heterogeneity β in micro level analysis, regional incentives are effective only in few regions. On the other hand, public capital investments in education-health system have positive effects in general; but, physical public capital investments in transport-communication area have both positive and negative effects in several regions. Furthermore, the statistically significant positive affects of physical public capital investments occurred regions in which international transportation network and corridor of Turkey such as ESCAP and TRACECA. On the other side, human public capital investments have positive effects in the majority of the regions.