EconPapers    
Economics at your fingertips  
 

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

Selçuk Akçay and Karasoy Alper
Additional contact information
Karasoy Alper: Afyon Kocatepe University, Faculty of Economics and Administrative Sciences, Department of Economics, Afyonkarahisar, Turkey.

Review of Economic Perspectives, 2020, vol. 20, issue 1, 23-49

Abstract: 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.

Keywords: ARDL; democracy; private investment; Turkey (search for similar items in EconPapers)
JEL-codes: C32 E22 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.2478/revecp-2020-0002 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:20:y:2020:i:1:p:23-49:n:2

DOI: 10.2478/revecp-2020-0002

Access Statistics for this article

Review of Economic Perspectives is currently edited by Antonín Slaný

More articles in Review of Economic Perspectives from Sciendo
Bibliographic data for series maintained by Peter Golla (peter.golla@degruyter.com).

 
Page updated 2025-01-08
Handle: RePEc:vrs:reoecp:v:20:y:2020:i:1:p:23-49:n:2