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

Author

Listed:
  • 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.

Suggested Citation

  • Ertugrul Deliktas & Özlem Önder & Metin Karadag, 2007. "The Spillover Effects of Public Capital Formation on the Manufacturing Industry in the Turkish Geographical Regions," Working Papers 0702, Ege University, Department of Economics.
  • Handle: RePEc:ege:wpaper:0702
    as

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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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    References listed on IDEAS

    as
    1. Douglas Holtz-Eakin & Amy Schwartz, 1995. "Spatial productivity spillovers from public infrastructure: Evidence from state highways," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(3), pages 459-468, October.
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    More about this item

    Keywords

    Regional development; public capital; spillover effects; vector autoregression; Turkish manufacturing industry.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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