The Effects of Public and Private Capital Investments on Sectoral Output: A Panel Approach for the Case of Turkey
Meliha ENER, Cüneyt KILIÇ, Feyza ARICA

Abstract
The fixed capital investment is a key macroeconomic indicator and its effects on economic growth have been widely taken place in both the theoretical and empirical literature. Using the framework of an endogenous growth model, this study analyzes the impacts of public and private investments on their gross domestic product composition in Turkey over the period 1998 – 2012. In order to estimate this relationship, panel data estimation techniques were applied. The empirical results show that both public and private capital investments have played important role on the process of growth of Turkey, and that the effect of public capital investment on sectoral output is larger than private capital investment’s effect.

Full Text: PDF