Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227539 
Year of Publication: 
2020
Citation: 
[Journal:] Review of Economic Perspectives [ISSN:] 1804-1663 [Volume:] 20 [Issue:] 1 [Publisher:] De Gruyter [Place:] Warsaw [Year:] 2020 [Pages:] 23-49
Publisher: 
De Gruyter, Warsaw
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.
Subjects: 
ARDL
democracy
private investment
Turkey
JEL: 
C32
E22
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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