THE ROLE OF TECHNOLOGICAL DIVIDE BETWEEN RURAL AND URBAN AREAS ON FINANCIAL AND HUMAN CAPITAL

Türkçe

Technological innovations are reshaping today’s world, and digitalization has become a key driver influencing national economies. This study investigates the determinants of total factor productivity (TFP) changes across 12 Turkish regions from 2011 to 2023 within the framework of Digital Divide Theory. Employing the Malmquist Index, it assesses the impact of technological disparities on financial and human capital. Results show that the West Marmara, Mediterranean, and Black Sea regions demonstrated high technical efficiency, while Istanbul and the Aegean regions led in technological progress and TFP growth. Deposit distribution, education levels, and R&D human resources positively affected productivity in developed regions. However, income inequality and R&D expenditure had weaker effects than expected, indicating that these factors alone cannot explain regional TFP gaps. The study highlights efficient R&D use, reduced input waste, and technological transformation as vital for sustainable regional development in Turkey.