Abstract: In this study, existence of inflation convergence among 26 regions included in nuts Level 2 at 2004:M01-2016:M12 period is analyzed by 6 different models. Stationarity of the series is tested by LLC, IPS and Hadri panel unit root tests and the series are found to be I(1). Existence of causality relationships between the series are examined with Granger and Dumitrescu and Hurlin panel causality tests. Existence of the cointegration relationship between the series in the models is tested with Kao panel cointegration test. The cointegration coefficients in the models are estimated by PDOLS method. In the analysis conducted for income convergence; hypothesis of absolute income convergence between regions in Turkey is not valid for 2004-2016 period, while the conditional income convergence hypothesis is determined to be valid. It is estimated that interregional convergence and per capita income are increased by the inflation and whether the regions are located in the west side of the country while it is seen that public spending have insignificant or negative impact. It is determined that employment in the agricultural sector and the income generated from this sector damage economic growth and income convergence between the regions while services and industrial sectors have positive contributions in this field. While foreign trade, labor force training and the number of qualified health personnel positively affect the per capita national income and interregional income convergence of the regions, climate variables are found to be detrimental in this area. According to sigma convergence and variation coefficient approaches conducted for income, it is also seen that interregional income convergence is valid for 2004-2016 period in Turkey.
Regional Income Convergence, Beta Convergence, Sigma Convergence, Variation Coefficient.