The Effects of Public Infrastructure on Private Sector Performances in the Turkish Regional Manufacturing Industries (original) (raw)
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Working Papers, 2007
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.
The Annals of Regional Science, 2009
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. Spillovers are also an integral part of the regional impact of public capital installed in the outside of the region. Therefore, we estimate the dynamic effects of public capital using VAR models for the seven regions of Turkey by including capital formation installed outside of the region. The results show that direct effects of public capital are positive in some regions, while indirect effects of public capital are positive in most regions.
Public Capital Accumulation and Private Sector Performance
Journal of Urban Economics, 1999
This paper analyzes the effects of public capital on private sector variables in a vector auto-regressive framework. Empirical results suggest first, that public capital follows a policy rule that relates public capital positively with lagged output and negatively with lagged employment. Second, public capital crowds in private capital while the long-term effects on employment are only marginally positive. Finally, a one-dollar increase in public capital increases private output in the long term by 65 cents. Accordingly, while public capital is productive its effects on output are much lower than claimed in the previous literature.
Infrastructure Capital and Private Sector Productivity: A Dynamic Analysis
Quarterly Journal of Business and Economics, 1998
On Ihe other hand, the re appears to ~ no discernible effect on productivity by core infrastructure capital in the short run. We also find that while public capital is weakly exogenous for the paramete rs of the long· run relation, it is· not strongly exogenous, as it is Granger-caused by privale sector productivity.
Public infrastructure and the performance of manufacturing industries: short-and long-run
2001
We develop a theoretical framework that allows determining a wide range of infrastructure effects both in the short and long run. While the ones in the short run have already been analyzed, we derive the elasticities concerning the long run by allowing adjustments in the quasi-fixed inputs towards their optimum levels. By considering the impact of infrastructure on private investment decisions, it is observed how, apart from the direct effect on costs in the short run, infrastructures present an indirect channel of influence (in the long run) through its effect on private capital. The model is applied to the manufactures in the Spanish regions.
Empirical Economics, 2001
We analyze the dynamic relationship between public investment and output. Whereas existing empirical studies on the e¨ects of public capital typically rely on single-equation models of the private sector, we investigate the role of public investment in an economy by examining impulse responses derived from vector autoregressions. Using data from six industrial countries, we speci®cally examine the following questions: does higher public investment lead to GDP increases; is there reverse causation from output to public investment; and what are the e¨ects of expenditure-neutral budget shifts from public consumption to public investment.
An Empirical Approach to Public Capital, Infrastructure, and Economic Activity: A Critical Review
The economic literature recognises the importance of public capital -commonly associated to infrastructure- as an additional factor in the production process, along with labour and private capital. This paper presents a critical review of the latest research assessing the link between public capital and national income from different perspectives. It is shown that empirical studies have been relatively successful in evidencing the importance of public capital on economic activity. However, more research in this field is needed, as there are still important caveats to be looked into.
Public capital stock and state productivity growth: Further evidence from an error components model
Empirical Economics, 1995
The contribution of different types of public infrastructure on private production is investigated using time-series of cross-section data for the 48 contiguous states over the period [1970][1971][1972][1973][1974][1975][1976][1977][1978][1979][1980][1981][1982][1983][1984][1985][1986]. A Cobb-Douglas production function is estimated with unobserved state-specific effects. Measurement errors in public capital stock and its components are detected and rectified.