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

The growth in micro firm population is positively related to market growth rate, captured by
population growth rate (POPGR) and the degree of specialisation of micro firms in one
sector (SPECFIR). Actually, POPGR explains 0.18 of variation in micro firm population by
itself.

The best equation fitted to explain the change in firms employing more than 9 persons,
CHANTOT is given below. There is positive relationship between growth in non-micro firm
population and the both indicators of employment structure, the rate of illiterate people
(NONQUAL) and (GRAD) graduates in active population, the rate of manufacturing
employment (MANUF) and the rate of agricultural employment (AGRIC) in total
employment, the degree of specialisation of employment in one sector (SPEC), while market
size (LGPOPUL) has a negative effect.

Dependent Variable: CHANSM

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

Actually, as it can be remembered from table 4, showing the simple correlations among the
dependent and independent variables, there is a strict difference between the structures of
micro and non-micro firms. The rate of illiterate and graduate people in active population do
explain the 0.50 of variance in non-micro firm population by themselves. While the market
size negatively affects the change in non-micro firm population, it becomes insignificant
with the introduction of the degree of specialisation of firms in one sector (SPECFIR) rather

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