51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
Regional disparity is one of the important characteristics of Turkish economy. The paper focuses on the explanatory power of market potential on the regional differences in Turkey. Regional divergences in wages and employment are used as the proxies for regional differences. Empirical results reveal that, under various specifications, variation in market potential is an important determinant of regional differences.