The Effect of Creative Class on Economic Development of Cities: The Case of Turkey

Economic power of cities depends on their human capital as much as their pyhsical capital. Florida’s hypothesis about Creative Class is tested in this study in the context of Turkey. For this purpose, we examine the relationsip between alternative mesures of human capital and regional development applying structural equation models and path analysis. Our results confirm Florida’s hypothesis that high level of creativity fosters regional economic development. Evidence also suggest that total creative class seems to be better measurement than education in accounting for regional development across Turkish cities. In addition, our results suggest that while there is statistically significant association between the distribution of creative class and the presence of artistically culturally creative individuals (bohemians), there is no significant association with consumer amenities and university. As a result, Florida’s hypothesis does not completely explain the distribution of creatives in the Turkish context.