The efficiency analysis of regional development policies implemented by the state: The Turkish case

The aim of this study is to examine the efficiency of the tools which a state uses to ensure regional development and to determine how regional disparities change in Turkey. In line with this purpose, a multi-dimensional regional development index has been built, and the effects of infrastructure, tourism, human capital and induced private sector investments on development levels of regions have been determined. The study has been prepared in three sections. In the first one, relevant concepts are explained and theoretical framework is drawn. In the second part, regional development policies of the European Union (EU) and Turkey are emphasized, and some examples are given by investigating various plans and programs. In the third section, regional development index is generated by using principal component analysis, and regional development levels are calculated for each year. Additionally, the effects of public expenditures on regional development are estimated by performing panel data analysis. As a result of the research, a shift in the implementation of Turkish regional policies associated with EU candidacy has been observed. In this period, the regional development policies have been more emphasized and aimed to reduce regional disparities. However, it has been identified that regional inequalities between the West and the East were not eliminated, on the contrary, a divergence has been observed between these regions. In 2001-2015 period, it has been determined that human capital investments produces the most effective result, and both infrastructure investments and incentives to which vast resources are allocated do not influence regional development level as expected.