Change in firm population and spatial variations: The case of Turkey

that the equation is statistically significant. There is positive relationship between growth in
firm population and market size (LGPOPUL), the degree of specialisation of firms in one
sector (SPECFIR) and the mean size of firms (MEANSIZE), while the growth rate of GDP
per capita (GDPCAPGR) and the rate of manufacturing employment (MANUF) in total
employment do have a negative effect.

Dependent Variable: CHANTOT

* Coefficients significant at 0.01 level. ** Coefficients significant at 0.10 level.

While the introduction of market growth (POPGR) instead of market size (LGPOPUL) in
the equation does not only deteriorate the fitness of the rate of manufacturing employment in
total employment (MANUF) leading to the exclusion, but also markedly reduce the
explanatory power of these four variables to 0.34. Another variable is the degree of
specialisation of employment in one sector (SPEC) that makes MANUF insignificant and
explains the growth in firm population with the other three variables LGPOPUL,
GDPCAPGR, MEANSIZE in an explanatory power of 0.31. Actually all these emphasise
that GDPCAPGR, MEANSIZE and SPECFIR are the key influences upon growth in total
firm population. However, it is very surprising that neither the location of firms whether
urban or rural nor the employment structure have any impact on the growth in firm
population.

Although the best equation explaining the growth of micro firm population, CHANMIC is
shown below, the R² value is the lowest among other two dependent variable. The F test
informs a significant equation with the following variables:

Dependent Variable: CHANMIC

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