Perceptual assessment of the local economic development factors: TR41 and TRC1 nuts 2 regions

Local economic development practices that can be traced back to the 1960's, while initially come into prominence in certain areas, has spread rapidly around the world due to globalization. Not every country could have benefit from the large-scale yields that globalization can bring. As a result of the global policies, inequalities between regions with different social and economic structures have been increased. As a result of increasing inequality and uneven distribution of the growth, regions need 'bottom-up' approach rather than 'top-down' approach. In other words, need of coping with the problems that globalization brings, has accelerated the spread of local economic development approach. Local economic development approach which has spread almost all over the world consists many components that depends on local and national scale. This multi-component approach and policies differ according to the social and economic structure by local level. As well as social and economic structure, the actors of different organizational structures also form an important part of the local economic development process. The aim of this study is to evaluate how local economic development factors are prioritized and perceived by the actors of different organizational structures in TR41 and TRC1 nuts 2 regions which have different socio-economic development levels. These local economic development factors are determined as a result of an extensive literature review, are indicators that have been agreed upon in scientific studies. The conceptual background of local economic development approach in this context has been established. At the first section of the thesis, definition of local economic development approach has been explained and historical development were examined. Then the effects of the globalization, that had a big impact on emergence of LED approach, has been referred. The conceptual background content has continued with the LED strategies that developed with the globalization process. After strategies, local development factors that has been the main input for the study, definitions of this strategy and how those factors have been handled in different studies have been examined. In order to complete the conceptual framework of the multi-layered LED approach both related theoretical approachs and actors have been referred. At the second section of the thesis, local economic development initiatives in the world from different cities and regions has been addressed and examined in the context of international organizations experience. Three major international organizations especially prominent with their local economic development initiatives especially after 1980's; World Bank, European Union and the Organization for Economic Cooperation and Development (OECD)'s approach to local economic development (LED) and the programs developed in this context has been examined and is addressed at certain applications. In the third section local government structure in Turkey has been demonstrated with the basic outline. At the first part of the section, the role of local policies in regional approaches has been examined through development plans which are the ones of the most basic tools of development and regional development tools and regional development tools. Development plans were investigated over their featured principles, approaches and policies, targets and tools. Regional development tools which have their own formation dynamics, supporting actors, different coordination levels and the strategies diversified according to the visions they have, were reviewed with the extent of their scales, regions, relevance levels and sectors. After these investigations that reveal the role of local policies in regional approaches, legislative regulations about the local governments and the distribution of the local governments in Turkey has been examined. After quantitative distrubition, financial capacities of the local governments has been examined through income, expenses and public investment. This section aims to put forth the share of the central government and the share obtained from local resources in local government budget. At the fourth section of the study that includes perceptual assessments of the local economic development factors' prioritization, consists case studies and field research. TR41 and TRC1 NUTS2 regions, which are the case areas and also has different socio-economical development levels, has been determined with secondary data among with LED factors that has been taken into account in the thesis. At the first part of the section, secondary data about regions has been objectively compiled. In the objective evaluation part which is the first phase of the assessment, TR41 and TRC1 NUTS2 regions were reviewed through the socio-economic development ranking surveys of provinces and regions (SEGE) and The International Competitiveness Research Institute's (URAK) inter-city competitiveness index and sub-indices that consist of human capital and quality of life sub-index, branding skills and innovation sub-index, trade skill and production potential sub-index and accesibility sub-index. As well as the socio-economic development ranking surveys of provinces and regions (SEGE) and The International Competitiveness Research Institute's (URAK) inter-city competitiveness index and sub-indices, the social capital levels of TR41 and TRC1 NUTS2 regions were considered in the context of the objective evaluation part. Social capital level of NUTS2 regions were grouped considering some particular variables which are turnout rate, number of associations per ten thousand people, suicide rate, divorce rate, edition of newspapers and magazines, tax-collection accrual rate, net migration rate, electricity theft-loss rate and the ration of higher educated population in total population. At the second part of the fourth section, surveys answered by the actors of different organizational structures have ranked LED factors according to their importances in local level have been evaluated. The analyses were based on the results of Mann-Whitney U tests used to analyse regional differences, Kruskal Wallis tests used to test institutional differences and mean rankings in the prioritization of the factors according to importance to local economic development (LED). After non-parametric statistical tests, that are Mann-Whitney U tests and Kruskal Wallis tests, and mean rankings, personal comments from the actors about local economic development (LED) factors reveals the perceptual assessment part of the study. As a result of objective and subjective assessments, it has been seen that importance ranking of local economic developmant factors which are agreed upon scientific studies, differ in regions with different socio-economic development levels. While in TRC1 region which is further back at socio-economic development ranking, traditional factors perceived as more important by local actors particulary in Adıyaman and Kilis, in TR41 region intangible factors such as institutional capacity, business culture etc. perceived as more important compared to the TRC1 region. As well as regional comparisons, provinces in these NUTS2 regions stand out with their local resources, dynamics. For conclusion, local economic development and linked basic factors change according to the level of socio-economic development and the local government structures. In addition to taking into consideration the central government's development axes and visions, local governments which adopted a multi-actored, multi-leveled and 'bottom-up' approach, are expected to be more successful in local economic development by making more effective policies considering local potentials.