Rural-urban connectivity and sustainable development: village roads, market access, and agglomeration in emerging Turkish provinces, 2011-2021
DOI:
https://doi.org/10.26754/ojs_ried/ijds.12993Keywords:
Agglomeration, Market access, Rural-urban connectivity, Sustainable development, System GMM, Village roadsAbstract
Transport infrastructure fosters agglomeration, by reducing trade costs and enhancing market access. Village road networks drive intra-regional cohesion, by establishing rural-urban connectivity. In Turkey, the 2012 administrative reform effectively restricted village road provision to non-metropolitan provinces. This paper estimates the reduced-form income and growth effects of village roads under this policy through a market access channel. To account for temporal adjustments and endogeneity, this study employs a dynamic panel data model estimated via a system generalized method of moments framework. The results indicate a positive relationship between village roads and both the level and growth rate of gross domestic product per capita. However, the marginal income gains become statistically insignificant at an urbanisation threshold of approximately 42 %. These findings suggest that rural road investment decisions should consider regional urbanisation rates. Additionally, they provide economic justification for the policy shift through the 2012 administrative reform. Post-estimation diagnostics validate the model specifications and instrument validity.
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