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The Effects of Public Capital on Regional Convergence in Turkey

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Author Info
A. Özlem Önder () (Department of Economics, Ege University)
Metin Karadag () (Department of Economics, Ege University)
Ertugrul Deliktas () (Department of Economics, Ege University)

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Abstract

In recent years there have been many studies that explore the impact of public capital formation on economic growth at regional level, because public capital might give rise to reducing regional disparities across regions. Regarding Turkey, investigating the effects of public capital on economic convergence at the regional level gains importance since significant regional disparities exist between the regions. This study attempts to explore the dynamic effects of public capital on output per capita in terms of convergence in the Turkish regions. A conditional convergence model based on per capita GDP and public capital is estimated using the panel data set of Turkish regions at NUTS 1 level for the time period 1980-2001. The spatial effects are also investigated. The results show that there exists conditional convergence. The results also reveal that in some of the models public capital has a positive and significant effect on output per capita. However, in the models with spatial effects the public capital does not have a significant effect on regional convergence.

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File URL: http://iibf.ege.edu.tr/economics/papers/wp07-01.pdf
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File Function: First version, 2007
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Publisher Info
Paper provided by Ege University, Department of Economics in its series Working Papers with number 0701.

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Length: 24 pages
Date of creation: Jan 2007
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Handle: RePEc:ege:wpaper:0701

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Web page: http://www.iibf.ege.edu.tr/economics/
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Related research
Keywords: Regional development; public capital; convergence; Turkish regions; spatial effects;

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Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ertugrul Deliktas & Mehmet Candemir, 2007. "Production Efficiency and Total Factor Productivity Growth in Turkish State Agricultural Enterprises," Working Papers 0703, Ege University, Department of Economics. [Downloadable!]
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