View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics International Conference on Emerging Economic Issues in a Globalizing World, Đzmir, 2008 Regional Development in Şanlıurfa Province, the Center of South Eastern Anatolian Project (GAP): Key Sector Analysis Menevi ş Uzbay Pirili Ege University, Turkey R.Funda Barbaros Ege University, Turkey Abstract The challenges facing Şanlıurfa are not unique, they are the same challenges found in rural areas all around the world. Agriculture is still the most important sector in Şanlıurfa, but it is generating fewer and fewer jobs. New approaches used in regional development shift from a focus on individual sectors (such as agriculture policy) to one based on a comprehensive multisectoral approach in which agriculture is conceived as one component sector of a comprehensive regional development policy. Within this framework, there are two major aims of this study. The first aim is to identify the high point sectors (key industries) by using LQ analysis in Şanlıurfa province and 11 districts. The analysis encompasses all sectors of industry and services thus excluding agriculture. On the other hand the economy of Şanlıurfa, endowed with very rich arable land resources and irrigation facilities, thanks to GAP-(South Eastern Anatolian Project), is mainly based on agriculture. Accordingly the second aim of this paper is to analyze the development potentials of “clusters of agro-industries based on organic agriculture products ” in the region. The findings of the analysis reveal that the key sectors identified in industry and services (food and textiles industries and retail and wholesale of food stuff) provide inputs from the main agricultural products in the region. On the other hand considering the availability of land and other facilities for organic agricultural products the findings of the study strongly supports development of “clusters of organic - agro industries” in Şanlıurfa Region. 41 International Conference on Emerging Economic Issues in a Globalizing World, Đzmir, 2008 Socio-Economic Profile of Şanlıurfa Province Among the 26 NUTS 2 regions defined by State Planning Organization in the framework of regional development policies, Şanlıurfa is grouped together with Diyarbakır under the code TRC2. At NUTS 3 level its code is defined as TRC21. Map 1 shows 9 Provinces of the south eastern Anatolia. Map 1: Şanlıurfa in South East Anatolia Region The surface area of Şanlıurfa located in Southeastern Anatolia Region of Turkey is 19.020 km 2 and this constitutes 3% of the total surface area of Turkey (Bulu and Eraslan, 2004). Şanlıurfa is the Center City of GAP project. Şanlıurfa is surrounded by Gaziantep in the west, Adıyaman in the northwest, Diyarbakır in the northeast, Mardin in the east, and Syria in the south. There are 11 districts including the central district. These are Akçakale, Birecik, Bozova, Ceylanpınar, Halfeti, Harran, Hilvan, Suruç, Siverek and Viran şehir. Demographic Structure As it may be seen in Table 1, total population including the central province and districts is 1,443,42 according to 2000 census. Population growth rate is 30.9 (‰) , far above the average of Turkey (14.9 ‰). On the other hand the average size of a household in the province is higher than 4.5, the average of Turkey. It is 6.87. Namely, approximately 7 persons live in a house. When the distribution according to age is considered, the province has a quiet young population. 0-4 age group has the biggest share within population. It is estimated that the population of Şanlıurfa will reach 1.9 million in 2010 through this rapidly growing population. 42 International Conference on Emerging Economic Issues in a Globalizing World, Đzmir, 2008 Table 1: Demographic Indicators - 2000 Codes Total Urban Population Population Total Household Population population growth density Fertility avarege- growth rate (‰) Rate person rate % 2004 (‰) Türkiye- 67,803,9 64,9 14.9 86 2,53 4,5 TR South East 6,608,619 62,69 21.23 86 4,57 6,48 Anatolia- TRC Şanlıurfa, 2,806,130 59,15 24.6 80 4,68 6,76 Diyarbakır- TRC2 Şanlıurfa- 1,443,42 58,34 30.9 75 4,83 6,87 TRC21 Diyarbakır- 1,627,08 60 18.4 87 4,51 6,64 TRC22 Zonguldak- 615,599 40,66 -10,08 186 1,93 4,23 TR811 Đstanbul- 10,018,73 90,69 30,73 1,885 1,97 3,93 TR100 Source: TU ĐK, DPT, Annual Statistical Reports. The economy of Şanlıurfa is based on agriculture. As it may be seen in Table 1 and 2 nearly 42% of the population live in rural area. Urbanization rate decreases down to 30% in the districts except the central district. However, with 58% urbanization rate, the province is below the average of Turkey which is %65. Table 2: Population Breakdown of the Provinces of Şanlıurfa Name of Total Urban population Share of urban population District Population in total % Merkez 534706 385588 72,11 Akçakale 77261 32114 41,57 Birecik 74671 40054 53,64 Bozova 65842 19848 30,14 Ceylanpınar 67817 44258 65,26 Halfeti 34402 2766 8,04 Harran 56258 8784 15,61 Hilvan 38411 16094 41,9 Siverek 224102 126820 56,59 Suruç 82247 44421 54,01 Viran şehir 187705 121382 64,67 Source: TU ĐK, DPT, Annual Statistical Reports. Regarding literacy rate it is very low particularly among women (52%) which is far below the average of Turkey (%80). Another striking issue is the extent of net outmigration in Şanlıurfa (-39 (‰) . Namely, 39 out of 1000 persons migrate from 43 International Conference on Emerging Economic Issues in a Globalizing World, Đzmir, 2008 Şanlıurfa. As it may be seen in Table 3 , the province with the highest net outmigration is Zonguldak- 74 (‰) , and Antalya ranks first in term of net immigration. One needs to analyze the structure of the labor market of Şanlıurfa to understand the reasons of outmigration in Şanlıurfa. Table 3: Migration Data Codes Permanent In- Out- Net Growth of settlement migration migration Migration Net population Migration 2000 Türkiye-TR 60,752,995 40,983,56 40,983,56 0 0 South Eastern-TRC 5,687,740 212,425 4,223,15 -209,890 -36.23 Şanlıurfa,Diyarbakır- 2,419,448 96,864 194,240 -97,376 -39.45 TRC2 Şanlıurfa-TRC21 1,243,058 38,320 87,632 -49,312 -38.9 Diyarbakır-TRC22 1,176,390 62,996 111,060 -48,064 -40.04 Antalya-TR611 1,451,771 171,982 81,525 90,457 64.31 Zonguldak-TR811 574,182 27,839 71,848 -44,009 -73.82 Source: TU ĐK, DPT, Annual Statistical Reports. Economic structure and Labour Market Economic structure of Şanlıurfa is mainly based on the agriculture sector. According to 2000 data, the sectoral breakdown of regions GDP is agriculture (43%), services (40%), industry (11%) and construction (6%). GDP in 2000 is 1 billion 850 Million Dollars, and income per capita is 1.300 Dollars. (Table 4). However referring to the labour market data, we see that employment generating capacity of agriculture sector has been declining. As it may be seen in ( Table 6), in terms of TRC2 -Urfa-Diyarbakir data, employment share of agricultural has declined from 47.4% in 2004 to 26.9% in 2006. On the other hand the share of industry in employment is increasing gradually as it increased from 12.1% in 2004 to 16.2% in 2006. 44 International Conference on Emerging Economic Issues in a Globalizing World, Đzmir, 2008 Table 4: Distribution of GNP by Sector Codes Per capita GNP Per capita GNP 1995-$ 2001-$ Türkiye-TR 2727 2146 Güneydo ğu Anadolu-TRC 1498 1186 Şanlıurfa, Diyarbakır-TRC2 1471 1156 Şanlıurfa-TRC21 1238 1300 Diyarbakır-TRC22 1696 1313 Ağrı, Kars, I ğdır, Ardahan-TRA2 877 730 Kocaeli, Sakarya, Düzce, Bolu,Yalova-TR42 4873 4109 Source: TU ĐK, DPT, Annual Statistical Reports. Table 5: Employment and Labour Force in TRC2 Region 1000 person 2004 2005 2006 TRC (2006) Population 3.05 3.155 3.199 7347 Civilian Population 15 + ages 1.657 1.731 1.782 4214 Labour Force 649 615 575 1452 Unemployed 70 64 69 204 Employment 579 551 505 1248 Unemployment 10.8 10.4 12 14 Labour Force participation rate % 39.2 35.5 32.3 34 45 International Conference on Emerging Economic Issues in a Globalizing World, Đzmir, 2008 Table 6: Distribution of Employment by Sector Codes 2004 2005 2006 Agriculture Industry Service Agriculture Industry Service Agriculture Industry Service Türkiye-TR Person 7,400 5,017 9,375 6,493 5,456 10,097 6,088 5,674 10,568 Thousand % 34,0 23,0 43,0 29,5 24,7 45,8 27,3 25,4 47,3 Güneydo ğu-TRC Person 572 249 635 408 292 673 299 294 654 Thousand % 39,3 17,1 43,6 29,7 21,3 49,0 24,0 23,6 Şanlıurfa- Person 275 70 234 210 76 264 136 82 287 Diyarbakır TRC2 Thousand % 47,4 12,1 40,1 38,1 13,8 47.9 26.9 16.2 56,8 Ağrı,Kars,I ğdır Person 209 14 94 201 18 107 172 18 116 ,Ardahan TRA2 Thousand % 65,9 4,4 29,7 61,7 5,5 32,8 56,0 5,9 37,8 Đstanbul TR100 Person 26 1,412 1,880 23 1,527 2,005 19 1,538 2,119 Thousand % 0,8 42,6 56,7 0,6 42,9 56,4 0,5 41,8 57,6 Source: TU ĐK, DPT, Annual Statistical Reports. TU ĐK Genel Sanayi ve Đş yerleri Sayımı, Geçici Sonuçlarına Göre Đl Đş yeri Sayısı ve Đstihdam, 2005.