The Productivity Impact of Infrastructure in Turkey, 1987 - 2006
This paper explores the impact of some key infrastructure measures in transportation, telecommunication and electricity production sectors on labor productivity, using data on two-digit sectors for the Turkish economy for the years 1987 to 2006. We find both statistical and economic significance of infrastructure on productivity growth, for road, port and air transport, telecommunications and electricity production. In the railway sector, only measures of actual freight carried are consistently statistically significanctly associated with productivity growth, while other measures of infrastructure are insignificantly or perversely associated with productivity growth. Given that the railway transport sector is the only infrastructure sector that remains closed to competition and private participation, this raises the issue of the significance of private sector involvement in infrastructure provision.
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