Determinants of private investments in Turkey: Examining the role of democracy

Review of Economic Perspectives

卷:20

Karasoy Alper¹  Akçay Selçuk¹ 

[1] Afyon Kocatepe University, Faculty of Economics and Administrative Sciences, Department of Economics, Afyonkarahisar, Turkey.;

关键词: ardl;    democracy;    private investment;    turkey;    c32;    e22;   

DOI  :  10.2478/revecp-2020-0002

来源: DOAJ

【 摘 要 】

This study investigates the determinants of private sector investments in Turkey with a focus on democracy. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach and two different democracy indices along with the other determinants of private investment, we estimated a private investment function for the 1975-2014 period. Our main finding is that democracy has a profound positive impact on private investment. Moreover, the results show that: (i) public investment is a substitute to private investment; (ii) macroeconomic instability dissuades private investment; (iii) real interest is a serious impediment to private investment; (iv) financial development and GDP growth rate stimulate private investment.

【 授权许可】

Unknown