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The effects of public capital on private sector performance in Turkish regional manufacturing industries1

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  • Metin Karadagˇ
  • Ertugˇrul Deliktaş
  • A. Özlem Önder

Abstract

This article investigates the impact of public capital formation on private manufacturing sector performance in the seven geographical regions of Turkey and in aggregate. A vector autoregression (VAR) model has been employed to estimate long run accumulated elasticities of private sector variables with respect to public capital for the time period 1980--2000. The results show that public capital affects private output positively in aggregate and in all regions apart from the Black Sea and Mediterranean regions. The results also reveal that only in the Marmara region, the impact is positive both on input and output. The public capital crowds in private sector inputs in some regions.

Suggested Citation

  • Metin Karadagˇ & Ertugˇrul Deliktaş & A. Özlem Önder, 2003. "The effects of public capital on private sector performance in Turkish regional manufacturing industries1," European Planning Studies, Taylor & Francis Journals, vol. 12(8), pages 1145-1156, October.
    • Handle: RePEc:taf:eurpls:v:12:y:2003:i:8:p:1145-1156
    DOI: 10.1080/0965431042000289269
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    Cited by:

    1. Davide Luca & Andrés Rodríguez-Pose, 2014. "Electoral politics and regional development: assessing the geographical allocation of public investment in Turkey," Working Papers. Collection A: Public economics, governance and decentralization 1402, Universidade de Vigo, GEN - Governance and Economics research Network.
    2. Davide Luca, 2013. "Regional development goals and distributive politics in the allocation of Turkey's central investments: socioeconomic criteria, parties and legislators' personal networks," ERSA conference papers ersa13p981, European Regional Science Association.
    3. Silvia Bertarelli, 2006. "Public capital and growth," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
    4. Metin KARADAG, 2010. "The Impact of Public Capital on the Efficiency of Private Manufacturing Industry at the Regional Level," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 10(4), pages 1167-1174.

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