Observations on Extending the Definition of Human Capital as a Source for Explaining Regional Differentials in Turkey

Abstract

This paper aims to analyze regional per capita income differentials in Turkey and the role of regional human capital differences in explaining these differentials. After a brief summary of evolution of per capita income differences among 64 provinces over the period 1980-2000, the paper captures a detailed account of human capital not only in terms of education but also with regard to innovation / learning and entrepreneurship. The findings showed that provinces indicated a differential growth pattern depending on their initial per capita income gaps from the national average and the education dimension of human capital is the basic factor behind this differential growth pattern. Based on this finding, which contradicts with the usual arguments in the literature emphasizing the role of innovation, learning and entrepreneurship, some discussions are made on the methodology used.