Porter-type regional agglomerations, export performance, and inclusive regional policy: An empirical assessment of Turkish manufacturing sector

Abstract

This study aims to evaluate the medium-term impact of regional agglomerations in the manufacturing sector of Turkey on export performance. To this end, we identified Porter-type agglomerations in ISIC two-digit manufacturing sectors for 58 NUTS-3 regions and the 2008-2019 period. In the empirical analysis section, we used a two-way fixed effects panel data model to analyze the effects of these agglomerations on sectoral export performance. The findings indicate that the advantages of Porter-type agglomeration are limited to certain mid-tech sectors. Also, labor-intensive low-tech manufacturing sectors are found to have no agglomeration advantages in export performance compared to mid-tech sectors. The findings indicate a technology policy need and an inclusive smart specialization strategy (3S) to enhance productivity and export competitiveness.