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The Spillover Effects of Public Capital Formation on the Manufacturing Industry in the Turkish Geographical Regions

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Author Info

  • Ertugrul Deliktas

    ()
    (Department of Economics, Ege University)

  • Özlem Önder

    ()
    (Department of Economics, Ege University)

  • Metin Karadag

    ()
    (Department of Economics, Ege University)

Abstract

This paper investigates the spillover effects of public capital formation on the Turkish private manufacturing industry at the regional level over the period 1980-2000. The aggregate effects of public capital cannot be captured entirely from the direct effects of public capital installed in the region itself. Therefore, we estimate vector autoregression (VAR) models for the seven geographical regions of Turkey by including capital formation installed outside of the region. The results show that public capital affects private sector performance positively in all regions apart from Central Anatolia. Positive spillover effects of public capital can be seen in some regions, like Marmara.

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File URL: http://iibf.ege.edu.tr/economics/papers/wp07-02.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Ege University, Department of Economics in its series Working Papers with number 0702.

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Length: 16 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:ege:wpaper:0702

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Web page: http://www.iibf.ege.edu.tr/economics/
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Keywords: Regional development; public capital; spillover effects; vector autoregression; Turkish manufacturing industry.;

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