The Effects of Public Capital on Private Sector Performance in Turkish Regional Manufacturing Industries

European Planning Studies, Vol. 12, No. 8, pp. 1145-1156, 2004

Posted: 11 Feb 2005

See all articles by Metin Karadag

Metin Karadag

Ege University - Department of Economics

Ertugrul Deliktas

Ege University - Department of Economics

A. Ozlem Onder

Ege University - Department of Economics

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 ran accumulated elasticities of private sector variables with respect to public capital for the 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.

Keywords: Regional development, public capital, vector autoregression, Turkish manufacturing industry

JEL Classification: C32, L60, R00

Suggested Citation

Karadag, Metin and Deliktas, Ertugrul and Onder, A. Ozlem, The Effects of Public Capital on Private Sector Performance in Turkish Regional Manufacturing Industries. European Planning Studies, Vol. 12, No. 8, pp. 1145-1156, 2004, Available at SSRN: https://ssrn.com/abstract=665487

Metin Karadag

Ege University - Department of Economics ( email )

Bornova, Izmir 35040
Turkey
+90 232 388 4000/1951 (Phone)
+90 232 373 4194 (Fax)

Ertugrul Deliktas

Ege University - Department of Economics ( email )

Bornova, Izmir 35040
Turkey

A. Ozlem Onder (Contact Author)

Ege University - Department of Economics ( email )

Bornova, Izmir 35040
Turkey
+90 232 343 40 00/5287 (Phone)
+90 232 3734194 (Fax)

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