SPATIAL KNOWLEDGE SPILLOVERS AND PRODUCTIVITY: A FIRMLEVEL ANALYSIS OF PRODUCTIVITY INTERACTIONS ON TÜRKIYE

2025-9-30
Altın, Mehmet Can
This study examines spatial interdependencies in firm-level productivity across Türkiye's manufacturing sector from 2009 to 2021. Using microdata from the Entrepreneur Information System (EIS), firm-level Total Factor Productivity (TFP) is estimated with the Ackerberg, Caves, and Frazer (2015) approach. A road network– based spatial weight matrix is constructed to capture realistic economic distances. Spatial patterns are first identified through Local Indicators of Spatial Association (LISA), followed by econometric estimation with Spatial Autoregressive (SAR), Spatial Error (SEM), and SARAR models. Results reveal significant positive productivity spillovers that decline with distance. These findings highlight the importance of geography in shaping productivity dynamics and provide policy-relevant insights for reducing regional disparities and fostering industrial upgrading.
Citation Formats
M. C. Altın, “SPATIAL KNOWLEDGE SPILLOVERS AND PRODUCTIVITY: A FIRMLEVEL ANALYSIS OF PRODUCTIVITY INTERACTIONS ON TÜRKIYE,” M.S. - Master of Science, Middle East Technical University, 2025.