Human Capital and Urbanization Literature Review

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Keyder, Caglar. "Globalization & Social Exclusion In Istanbul." International Journal of Urban and Regional Research 29.1 (2005): 124-134. Web.

The question and issues to be addressed in this source are the negative effects and outcomes that are seen with globalization within Istanbul and the rest of Turkey. There is the recognition that Turkey has globalized and grown significantly over the last century but there have also been a lot of people that have been hurt by the patterns rendered. One of the main reasons that urbanization happens and ends up having undesirable effects is the fact that the globalization and associated global reconfiguration has an effect on the "urban fabric" that causes a disturbing of the stability and balances of the economy. This is due to the restructuring of the same. The new networks brought on by globalization introduce new employment types and levels of differentiation. There are certainly people that benefit from these changes but there are others that actually end up suffering and struggling due to those same changes. Indeed, there are the bankers and young professionals that reap the benefits and then there are the working poor that end up having to struggle and work much harder for, on the whole, less money and overall opportunity. A city that is a great example of this in motion, of course, is in Turkey and that would be the city if Istanbul. Over the last decade or so, the amount of income inequality has become more prevalent and visible. This pattern and visibility is on par with what is commonly associated with the facets and traits of Latin American countries. Istanbul in particular has shifted from a country with a rather consistent and homogenous middle class to a society that is much more diverse but that diversity is in the form of both racial/ethnic diversity as well as income levels. One sobering example of this was a shift from the Gini distribution score of 0.43 in 1984 to a much worse 0.58 just ten years later, in 1994. The media has done its part to talk up the trend but the sensationalism of the media is certainly underpinned by a lot of truth. Housing shifts that occurred during this time period of integration was very haphazard and often illegal in nature. Rather than having an systematic and common sense pattern to things, people would basically glom onto different plots that were previously inhabited by others and/or would settle in on the edge of the current area of urbanization within the city. Even with the illegal nature of much of what was going on, it nonetheless allowed for a continual shift in the urban center and core and a domino effect relating to the same became apparent. However, even if this overall process allowed for winners, there were also a lot of "losers" that were excluded and otherwise marginalized during the process (Keyder).

Kirdar, Murat G., and D. Sirin Saracoglu. "Migration And Regional Convergence: An

Empirical Investigation For Turkey." Papers in Regional Science 87.4 (2008): 545-

566. Web.

The question and concern address by Kirdar would be the per capital income convergent that occurs when labor is mobile and thus shifts to account for disparities in per capita income from one area to another. Indeed, it is seen that income levels shift and move towards one another when such labor movement happens. An important thing to consider when it comes to the above urbanization process in Turkey is that while expansion was something that was clearly going on, there was also what could be referred to as convergence. This convergence, among other things, relates to the way in which per capita income levels shift and evolve.

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There are many models out there related to growth that cover the topics of things like labor mobility and the speed of convergence of those income levels just mentioned. One of the common and pre-existing economic growth theories that enter this discussion include the neoclassical growth theory. That theory commonly stipulates that when there are diminishing returns on production and homogenous labor and there is concurrently an ability for labor to be mobile, the labor would flow from the areas with low per capita income levels to areas where the income levels are higher. This shift would cause a fall in per capita income in those regions where the people are shifting to while the opposite would happen in the areas that are being vacated. This is precisely the convergence that was just mentioned. For example, if the wage level in a lower area is 5.00 and the wages in an adjacent area is 7.00, it stands to reason that a shift from the low area to the high area would cause some sort of convergence, probably around 6.00 or so. Obviously, the precise number would vary based on the traits and issues at hand. However, the 5.00 area would shift up due to the people vacating for higher wages and that same shift would cause the 7.00 area to go down. Such is certainly possible in Turkey and has been seen within the same. Indeed, Turkey has seen a large amount of internal migration for the precise reasons mentioned above and it most certainly has had an effect on the Turkish economy including with its employment levels, GDP levels and others similar metrics. Of course, the standard deviation and general patterns seen do not always adhere to the mean. There will always be a good number of outliers that defy the normal pattern. However, the overall averages and medians will still absolutely shift when the labor migrations above happen. This precise pattern is seen when looking at Turkish patterns and trends from 1975 to 2000. When looking at migration rates as compared to growth rates, the growth rate goes up steadily over time as the migration rate rises (Kirdar & Saracoglu).

Erdem, Umut. "Regional Human Capital Distribution & Disparities in Turkey." Review of Urban

& Regional Development Studies 28.1 (2016): 16-31. Web.

One factor that is commonly associated with more developed and advanced economies is what is known as human capital. Even if it's not associated with countries like Turkey a lot of the time, it should be because it absolutely exists and has some specific effects and outcomes. Any economist knows that human capital, of one type or another, is essential and needed for economic growth. The scholarly literature is rife with discussion and references to human capital and this has been pervasive when looking at sources from the 1960's to the 1990's. One of the major ways to improve and foster human capital is to enhance and grow the amount of education that is readily available and affordable to the people in a given area. An investment in education, in the minds of many, is a necessity if a country wants to enjoy "sustainable" economic growth. When it comes to this sort of thing in Turkey, there are examples of this in motion but the results are uneven due to the equivalently uneven amount of human capital investment. Indeed, there are clear regional disparities when going from area to area within that country. Another country where the same precise thing happens is China. Indeed, China is an entirely different area when comparing the coastal and interior regions of.....

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