Optimality of Public Capital in Turkey: A Regional Analysis
The aim of this study is to empirically investigate whether public capital is provided optimally both at the national and regional levels in Turkey. Our empirical work shows that public capital significantly contributes to the production of private manufacturing sector. Nonetheless, the findings...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Gaziantep University
2010-12-01
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| Series: | Gaziantep University Journal of Social Sciences |
| Online Access: | http://dergipark.gov.tr/jss/issue/24245/257059?publisher=gantep |
| _version_ | 1797912578546991104 |
|---|---|
| author | Lütfi Erden Hatice Karaçay Çakmak |
| author_facet | Lütfi Erden Hatice Karaçay Çakmak |
| author_sort | Lütfi Erden |
| collection | DOAJ |
| description | The aim of this study is to empirically investigate whether public capital is
provided optimally both at the national and regional levels in Turkey. Our
empirical work shows that public capital significantly contributes to the
production of private manufacturing sector. Nonetheless, the findings also
indicate that marginal productivity of public capital is smaller than that of private
capital, suggesting that public capital is over-provided at the national level. At
the regional level however, the picture is quite different. While public capital is
over-provided for the provinces with high performance in terms of income, it is
less-provided for the provinces with low performance. These results may be
taken to interpret that there exists no “efficiency vs. equality” trade-off for public
investment policy, and thus public investment as a regional policy ought to be
used for distributional (equality) purposes in Turkey |
| first_indexed | 2024-04-10T11:58:07Z |
| format | Article |
| id | doaj.art-51675762a3b147629062f9387a321411 |
| institution | Directory Open Access Journal |
| issn | 2149-5459 |
| language | English |
| last_indexed | 2024-04-10T11:58:07Z |
| publishDate | 2010-12-01 |
| publisher | Gaziantep University |
| record_format | Article |
| series | Gaziantep University Journal of Social Sciences |
| spelling | doaj.art-51675762a3b147629062f9387a3214112023-02-15T16:16:43ZengGaziantep UniversityGaziantep University Journal of Social Sciences2149-54592010-12-0193533551136Optimality of Public Capital in Turkey: A Regional AnalysisLütfi Erden0Hatice Karaçay Çakmak1Hacettepe Üniversitesi, İktisat BölümüHacettepe Üniversitesi, İktisat BölümüThe aim of this study is to empirically investigate whether public capital is provided optimally both at the national and regional levels in Turkey. Our empirical work shows that public capital significantly contributes to the production of private manufacturing sector. Nonetheless, the findings also indicate that marginal productivity of public capital is smaller than that of private capital, suggesting that public capital is over-provided at the national level. At the regional level however, the picture is quite different. While public capital is over-provided for the provinces with high performance in terms of income, it is less-provided for the provinces with low performance. These results may be taken to interpret that there exists no “efficiency vs. equality” trade-off for public investment policy, and thus public investment as a regional policy ought to be used for distributional (equality) purposes in Turkeyhttp://dergipark.gov.tr/jss/issue/24245/257059?publisher=gantep |
| spellingShingle | Lütfi Erden Hatice Karaçay Çakmak Optimality of Public Capital in Turkey: A Regional Analysis Gaziantep University Journal of Social Sciences |
| title | Optimality of Public Capital in Turkey: A Regional Analysis |
| title_full | Optimality of Public Capital in Turkey: A Regional Analysis |
| title_fullStr | Optimality of Public Capital in Turkey: A Regional Analysis |
| title_full_unstemmed | Optimality of Public Capital in Turkey: A Regional Analysis |
| title_short | Optimality of Public Capital in Turkey: A Regional Analysis |
| title_sort | optimality of public capital in turkey a regional analysis |
| url | http://dergipark.gov.tr/jss/issue/24245/257059?publisher=gantep |
| work_keys_str_mv | AT lutfierden optimalityofpubliccapitalinturkeyaregionalanalysis AT haticekaracaycakmak optimalityofpubliccapitalinturkeyaregionalanalysis |