Export Spillover Effect: A Spat?al Analysis For NUTS2 Regions In Turkey

Abstract

The purpose of this study is to investigate whether there exists export spillover effect among NUTS 2 regions of Turkey. The paper uses cross section data of the regions for 2014. Spatial Weight Matrice was formed by using Queen?s Contiguinity Rule.Moran?s I Spatial Autocorelation Test result indicates existence of spatial effect among the regions. LM test executed to choose right spatial model shows that the model fits the case is Spatial Error Model (SEM). Spatial Autocorelation coefficient Lamda is (λ) 0.24 which indicates positive correlation among the regions. The results obtained from SEM estimation suggest that 1% increase in import, number of expoter and number of registered working people rise xport 0.59%, 0.19% and 1.3 respectively. Significance of SEM Model coefficients are better than OLS estimation coefficients which is another proof of existence of spatial effect.