Abstract
There is widespread literature investigating the relationship between increasing trade openness and economic development; however the relationship between trade (openness) and regional development remains limited. This paper empirically examines the relationship between trade openness and regional development in Turkey. For this purpose, we initially define the regional development index for 81 provinces in Turkey. The definition is based on the concept and the calculation method of the human development index. We then add a few control variables within panel data estimation frameworks to contribute to the explanations of the relationship. The empirical findings show that the increases in trade openness are positively associated with future increases in regional development. In addition, the levels of government investments positively contribute to regional development. However, a negative relationship exists between the size of a province and its development.
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