A quantitative analysis on regional diversification in Türkiye manufacturing industry

It raises worry about why regions need to develop new growth paths and what impact their skills have in carrying out this process. In this context, the thesis prioritizes examining the effects of local ability and skills on the Turkish manufacturing industry geography, which have been subject to increasing interest in recent years and reveal regional diversification, which is the key factor of regional development. Regional diversification, which is an evolutionary process in which regions are recombined with new skills, knowledge and perspectives defined by existing knowledge, skills, and expertise, affects economic growth in the context of new market opportunities, employment increase and productivity, is an important element in overcoming regional lock-in and overspecialization. In this context, an approach focusing on the discussions in economic geography and regional planning literature has been adopted. The study carried out in the manufacturing industry of NUTS 3 regions in Türkiye aims to "determine the levels of regional diversification in the manufacturing industry and the local factors affecting regional diversification". In this context, quantitative data analyzes were used to determine the effects of economic and non-economic factors on the diversity level of economic activities in the regions. Analyzes were carried out on a provincial basis with various statistical data for the years 2004-2012-2021. While determining the diversification levels of 81 provinces with the entropy method, which is frequently used in diversification studies, factors affecting regional diversification were determined using correlation and decision tree methods. Curve estimation analysis and cluster analysis were used to estimate the diversity of the provinces. Analysis findings show that the diversification of regions into new economic activities is directly related to the level of competition and development. The thesis study shows that economic factors such as R&D investments, GDP, exports and imports, and dynamics such as social and human capital level and innovative structure have significant effects on determining the level of regional diversification. In this respect, it contributes to regional diversification studies and provides guidance for regional policies. However, when these elements are associated with the regions' own dynamic structures, it can be said that they may cause different effects in terms of regional diversification.