The Contribution of Regional Development Agencies to the Economies of Regions

Neslihan Künye

The changes brought on by the effects of globalization have prompted developed countries to abandon national development policies in favor of regional strategies. Regional Development Agencies (RDAs) have become an important policy tool during this process. Turkey was first introduced to the concept of RDAs during the harmonization process with the EU. One of the main goals of RDAs is to invigorate the economy of a region by providing various types of services aimed at increasing regional investments as well as the mobilization of regional dynamics through the participation of the local community. The aim of this study is to investigate the contributions of RDAs to the region development in Turkey for the period between 2004-2012. The study analyzes the effect of Development Agencies on Gross Values Added (GVA) by controlling for education, foreign trade and capital intensity using panel data techniques. The results indicate that RDAs make substantial contributions to the related regions’ economies. Moreover, foreign trade also appears to have a positive effect on GVA.

Keywords:

Regional development, development agencies, panel data, Turkey