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Transportation infrastructure investment, growth and international trade in Turkey

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  • Yeşim Kuştepeli
  • Yaprak Gülcan
  • Sedef Akgüngör

Abstract

Investment in transportation infrastructure facilitate the movement of the goods; leading to higher standards of living for the people of the whole globe. Although infrastructure is indispensable to achieve the main development targets in developing countries, such as urbanization, industrialization and sustainable economic development (Kim, 2006), the relationship between infrastructure expenditures, economic growth and international trade is inconclusive. The aim of this study is to investigate the effect of investment on highway infrastructure on international trade and economic growth in Turkey for the period of 1970 to 2005. The empirical results from causality and cointegration analysis suggest only a very weak short run effect of share of exports in Gross National Product (GNP) on highway transportation expenditures but no long run relationships between highway infrastructure expenditures, economic growth and international trade in Turkey.

Suggested Citation

  • Yeşim Kuştepeli & Yaprak Gülcan & Sedef Akgüngör, 2012. "Transportation infrastructure investment, growth and international trade in Turkey," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2619-2629, July.
  • Handle: RePEc:taf:applec:44:y:2012:i:20:p:2619-2629
    DOI: 10.1080/00036846.2011.566189
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    References listed on IDEAS

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    1. Byoungki KIM, 2006. "Infrastructure Development for the Economic Development in Developing Countries: Lessons from Korea and Japan," GSICS Working Paper Series 11, Graduate School of International Cooperation Studies, Kobe University.
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