Crowding-Out or Crowding-In? Analyzing the Effects of Government Spending on Private Investment in Turkey

Hüseyin Şen () and Ayşe Kaya ()

Panoeconomicus, 2014, vol. 61, issue 6, 631-651

Abstract: The main objective of this paper is to analyze empirically the effects of government spending on private investment, evaluating the existence of crowding-out/-in effects, in Turkey for the 1975-2011 period. In contrast to previous studies, we employed in the paper the modified version of David A. Aschauer’s (1989) model, which allows us to see the effects of each component of government spending taking place in the Turkish budget system. The empirical findings of the paper showed that government current transfer spending, government current spending, and government interest spending crowd-out private investment, whereas government capital spending crowds-in private investment in Turkey. Key words: Government spending, Crowding-out, Crowding-in, Private investment, Fiscal policy, Turkey.JEL: E62, H54, H72, R42.

Keywords: Government spending; Crowding-out; Crowding-in; Private investment; Fiscal policy; Turkey (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://panoeconomicus.org/index.php/jorunal/article/view/487/473 (application/pdf)

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:voj:journl:v:61:y:2014:i:6:p:631-651:id:487

Access Statistics for this article

Panoeconomicus is currently edited by Kosta Josifidis

More articles in Panoeconomicus from Savez ekonomista Vojvodine, Novi Sad, Serbia
Bibliographic data for series maintained by Savez ekonomista Vojvodine, Novi Sad, Serbia ().