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The Impact of Public Capital Stock on Regional Income in Turkey (Türkiye’de Kamu Sermaye Stokunun Bölgesel Çıktı Üzerine Etkileri)

Author

Listed:
  • Siretli, Merve

    (Ege University)

  • Karadag, Metin

    (Ege University)

Abstract

The effects of public capital stock on reducing regional disparities and on regional economic growth process have been studied in the literature in recent years. Regarding Turkey, there are large disparities in regional growth rates and thus studying the effects of public capital stock on regional economic growth gains importance. Hence, the main aim of this study is to investigate the impact of public capital stock on regional economic growth. For the aim of the study, we use panel data analysis by using the data set for the time period 2007-2014 at NUTS-2 level. The study uses the real gross domestic product as a dependent variable and private capital stock, labor, public capital stock as an independent variable. The results of the study show that; public capital stock, private capital stock, and labor have a positive and significant effect on regional output. In addition, the results of the study show that; public capital stock increases regional output although the amounts are different for each NUTS-2 region.

Suggested Citation

  • Siretli, Merve & Karadag, Metin, 2021. "The Impact of Public Capital Stock on Regional Income in Turkey (Türkiye’de Kamu Sermaye Stokunun Bölgesel Çıktı Üzerine Etkileri)," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 12(3), pages 523-535, July.
    • Handle: RePEc:ris:buecrj:0557
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    More about this item

    Keywords

    Public Capital Stock; Regional Economic Growth; Panel Data Analysis;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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