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

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Review of Economic Perspectives ; ISSN: 1804-1663 ; Volume: 20 ; Year: 2020 ; Issue: 1 ; Pages: 23-49 ; Warsaw: De Gruyter

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Investment; Capital; Intangible Capital; Capacity
• Subject: ARDL ; democracy ; private investment ; Turkey

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Akçay, Selçuk ; Karasoy, Alper
• Event: Veröffentlichung
• (who): De Gruyter
• (where): Warsaw
• (when): 2020

Further information

• DOI: doi:10.2478/revecp-2020-0002
• Handle: http://hdl.handle.net/10419/227539
• Last update: 10.03.2025, 11:46 AM CET