Internet infrastructure and regional convergence: Evidence from Turkey

Abstract

This study presents novel evidence regarding the role of regional internet infrastructure in reducing regional per capita income disparities. We base our study on the assumptions that (1) the diffusion of information homogenizes regional economies through reducing the dissimilarities in institutions and culture, and (2) the telecommunication capacity, represented by the internet infrastructure of a region, facilitates this flow of information. Using the data from the 26 statistical NUTS-2 regions of Turkey for the period 1999-2011, we find evidence that internet infrastructure increases the speed of regional convergence.