Regional development of Turkey by microcredit system

Abstract

Microcredit is a financial system creates women new employment opportunities, economic value-added, enables poverty reduction and promotes financial sector development which are among the principal purposes of developing countries. Since 1970s, it is implemented by small and medium enterprises of developing countries as social and economic development strategy. The first aim of this study is to examine the impacts of microcredit usage to female labor force participation and regional development of Turkey for 2004-2016 period is analyzed by Panel data analysis. The second aim is to analyze the relationship between economic growth and female labor force participation rate and prove the inversed-U shaped pattern of this relationship, like ‘Kuznets Curve’. In this regard, TR4 region (Western Marmara) of NUTS 1 (Nomenclature of Territorial Units for Statistics) in Turkey which is designated by Turkish Statistical Institute, included Kocaeli and Bilecik provinces were considered. Empirical results of this paper demonstrate that female labor force has decisive role on the selected region’s economic, social well-being and their employment structures which is essential for sustainable and regional development of Turkey. Women’s increasing participation role on the economy is crucial for defusing financial and economic crisis and also, it has fundamental role on poverty alleviation. For achieving these purposes, it is necessary to promote new job opportunities by microcredit financial system is the most encouraging strategy for improving female’s role on the economy. Thus, empowering conditions of women have strategic importance for a global sustainable economic development models and it is necessary to promote microcredit system to encourage female labor force participation. Increasing benefits of this system enhances development of the country.