[ConferenceObject] Analyzing the impact of fiscal austerity policy on urban resilience in Türkiye

Abstract

Urban resilience is defined as the ability of urban economies to absorb, respond to, and recover from external and internal shocks, including economic crises, policy changes, natural disasters, and socio-political disruptions. During financial crises, governments often attempt to stabilize the economy through fiscal austerity policies, which is one of the most comprehensive policy responses, including methods such as the government increasing taxes or reducing public spending. However, the socioeconomic impact of such policies in developing nations remains unexplored. Therefore, the objective of this research is to empirically analyze Türkiye’s fiscal austerity and its potential implications for regional urban resilience. While most literature predominantly explores the macro-level impacts of fiscal policies, this research conducts cross-regional comparative research using data on urban resilience and fiscal austerity in all 81 provinces of Türkiye between 2008 and 2024. With Principal Component Analysis (PCA), the urban resilience index is developed using 14 comprehensive indicators across three dimensions: economic, social, and infrastructural, allowing the analysis to provide a more nuanced interpretation of the relationship between urban adaptability and fiscal pressures...