BibTex RIS Kaynak Göster

Determining Factors of Private Investments: An Empirical Analysis for Turkey

Yıl 2010, Cilt: 11 Sayı: 11, - , 01.06.2010

Öz

Private investment plays a pivotal role in the free market economy. In the contemporary economic thinking private sector has a weighty and important place in the investment and production based growth. Considering the multifaceted nature of private investments, determining the factors which have effects on private investments gain importance. This paper aims to determine the factors which affect private investments in long-run in Turkey. To this end, the long-run private investment equation is estimated via bounds test (ARDL) approach to co-integration. Estimated coefficients of the variables show that in the long-run real GDP, real exchange rate, ratio of private sector credit to GDP, private external debt, inflation, and trade openness have a significant impact on private investments.

Kaynakça

  • Acosta, P. and A. Loza (2005), “Short and Long-run Determinants of Private Investment in Argentina”, Journal of Applied Economics, 3 (2), pp. 389-406.
  • Aysan, A., G. Pang and M.A.Véganzonés-Varoudakis (2005), “How to Boost Private Investment in the MENA Countries: The Role of Economic Reforms”, Topics in Middle Eastern and North African Economies, MEEA Online Journal, Vol. 7.
  • Babetskii, I. and B. Egert (2005), “Equilibrium Exchange Rate in the Czech Republic: How Good is the Czech BEER?”, CERGE-EI, Working Paper Series, No. 267.
  • Bannerjee, A., J. Dolado and R. Mestre (1998), “Error-correction Mechanism Tests for Co-integration in Single Equation Framework”, J. of Time Series Analysis, 19, 267-283.
  • Chhibber, A. ve S. van Wijnbergen (1988), “Public Policy and Private Investment in Turkey”, PPR Working Paper, World Bank.
  • Eşiyok, B.A. (2001), “Development of Fixed Capital Investments and the Structure of Exports in Turkey”, Development Bank of Turkey, Economic Researches, GA-015-10, Ankara. (In Turkish)
  • Ghura, D. ve B. Goodwin (2000), “Determinants of Private Investment: A Cross-regional Empirical Investigation”, Applied Economics, 32, pp. 1819-1829.
  • Huang, Y. (2006), “Private Investment and Financial Development in a Globalized World”, University of Bristol, Discussion Paper, No. 06/589.
  • Jenkins, C. (1998), “Determinants of Private Investment in Zimbabwe”, Journal of African Economies, 7 (1), pp. 34-61.
  • Khan, S. ve M.A. Khan (2007), “What Determines Private Investment? The Case of Pakistan”, Pakistan Institute of Development Economics (PIDE), Working Paper, 2007: 36.
  • Le, Q. V. (2004) “Political and Economic Determinants of Private Investment”, Journal of International Development, 16, pp. 589-604.
  • Mallick, S.K. (2002), “Determinants of Long-term Growth in India: A Keynesyen Approach”, Progress in Development Studies, 2 (4), pp. 306-324.
  • Narayan, S. and P. K. Narayan (2004), “Determinants of Demand for Fiji’s Exports: An Empirical Investigation”, The Developing Economies, XLII-1, pp. 95-112.
  • Oshikoya, T.W. (1994), “Macroeconomic Determinants of Domestic Private Investment in Africa: An Empirical Analysis”, Economic Development and Cultural Change, 42 (3), pp. 573-596.
  • Ouattara, B. (2004), “Modelling the Long Run Determinants of Private Investment in Senegal”, CREDIT Research Paper, No. 04/05.
  • Pahlavani, M. (2005), “Analysing the Trade-GDP Nexus in Iran: a Bounds Testing Approach”, Economics Working Paper Series, WP 05-25, University of Wollongong, Australia.
  • Pesaran, M.H. and Y. Shin (1999), “An Aoutoregressive Distributed Lag Modelling Approach to Cointegration Analysis”, Chapter 11 in S. Strom (ed.) Econometrics and Economic Theory in 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge University Press.
  • Pesaran, M.H., Y. Shin and R.J. Smith (2001), “Bound Testing Approaches to Analysis of Long Run Relationship”, Journal of Applied Econometrics, 16.
  • Ribeiro, M.B. ve J.R. Teixeira (2001), “An Econometric Analysis of Private Sector Investment in Brazil”, CEPAL Review, 74, pp. 153-166.
  • Sakr, K. (1993), “Determinants of Private Investment in Pakistan”, IMF Working Paper, No.93/30.
  • Seruvatu, E. and T.K. Jayaraman (2001), “Determinants of Private Investment in Fiji”, Reserve Bank of Fiji Working Paper, No. 2001/02.
  • Serven, L. (1998), “Macroeconomic Uncertainity and Private Investment in LDCs: An Empirical Investigation”, World Bank Working Paper.
  • Shrestha, M.B. (2005), “ARDL Modelling Aproach to Cointegration Test”, Proceedings of the 46th Annual Conference of New Zealand Association of Economists, Paper No. 13, Wellington, July 2005.
  • Shrestha, M.B. and K. Chowdhury (2005), “ARDL Modelling Approach to Testing the
  • Financial Liberalisation Hypothesis”, Economics Working Paper Series, No. WP 05-15, University of Wollongong, Australia.
  • SPO - State Planning Organization (2006), Press release about the evaluation of growth rate of year 2005 made by the Minister of State Ali Babacan, Ankara.
  • Taban, S. and A. Kara (2006), “Impact of Public Sector Domestic Borrowing on Private Investment Expenditures in Turkey”, Eskişehir Osmangazi University, Journal of FEAS, 1, (2), pp. 11-26. (In Turkish)
  • Wahid, Abu N. M. and M. Shahbaz (2009), “Does Nominal Devaluation Precede Real Devaluation? The Case of the Philippines”, Transition Studies Review, 16, pp. 47-61.
  • Valadkhani, A. (2004), “What Determines Private Investment in Iran?”, International Journal of Social Economics, 31 (5-6), pp. 457-468.
  • Vergil, H. (2002), “Control of Capital Movements and Its Effects on Private Investment”, Kocaeli University, Journal of Social Sciences Institute, 3 (1), pp. 19-33. (In Turkish)
  • Yılmaz, F. and N. Tezcan (2007), “Impact of Tax Revenue and Fixed Capital Investments on Ekonomic Growth: An Econometric Investigation”, in the proceedings of 8th Turkish Congress on Econometrics and Statistics, 24-25 May, Malatya, Turkey. (In Turkish).

Determining Factors of Private Investments: An Empirical Analysis for Turkey

Yıl 2010, Cilt: 11 Sayı: 11, - , 01.06.2010

Öz

Private investment plays a pivotal role in the free market economy. In the contemporary economic thinking private sector has a weighty and important place in the investment and production based growth. Considering the multifaceted nature of private investments, determining the factors which have effects on private investments gain importance. This paper aims to determine the factors which affect private investments in long-run in Turkey. To this end, the long-run private investment equation is estimated via bounds test (ARDL) approach to co-integration. Estimated coefficients of the variables show that in the long-run real GDP, real exchange rate, ratio of private sector credit to GDP, private external debt, inflation, and trade openness have a significant impact on private investments.

Kaynakça

  • Acosta, P. and A. Loza (2005), “Short and Long-run Determinants of Private Investment in Argentina”, Journal of Applied Economics, 3 (2), pp. 389-406.
  • Aysan, A., G. Pang and M.A.Véganzonés-Varoudakis (2005), “How to Boost Private Investment in the MENA Countries: The Role of Economic Reforms”, Topics in Middle Eastern and North African Economies, MEEA Online Journal, Vol. 7.
  • Babetskii, I. and B. Egert (2005), “Equilibrium Exchange Rate in the Czech Republic: How Good is the Czech BEER?”, CERGE-EI, Working Paper Series, No. 267.
  • Bannerjee, A., J. Dolado and R. Mestre (1998), “Error-correction Mechanism Tests for Co-integration in Single Equation Framework”, J. of Time Series Analysis, 19, 267-283.
  • Chhibber, A. ve S. van Wijnbergen (1988), “Public Policy and Private Investment in Turkey”, PPR Working Paper, World Bank.
  • Eşiyok, B.A. (2001), “Development of Fixed Capital Investments and the Structure of Exports in Turkey”, Development Bank of Turkey, Economic Researches, GA-015-10, Ankara. (In Turkish)
  • Ghura, D. ve B. Goodwin (2000), “Determinants of Private Investment: A Cross-regional Empirical Investigation”, Applied Economics, 32, pp. 1819-1829.
  • Huang, Y. (2006), “Private Investment and Financial Development in a Globalized World”, University of Bristol, Discussion Paper, No. 06/589.
  • Jenkins, C. (1998), “Determinants of Private Investment in Zimbabwe”, Journal of African Economies, 7 (1), pp. 34-61.
  • Khan, S. ve M.A. Khan (2007), “What Determines Private Investment? The Case of Pakistan”, Pakistan Institute of Development Economics (PIDE), Working Paper, 2007: 36.
  • Le, Q. V. (2004) “Political and Economic Determinants of Private Investment”, Journal of International Development, 16, pp. 589-604.
  • Mallick, S.K. (2002), “Determinants of Long-term Growth in India: A Keynesyen Approach”, Progress in Development Studies, 2 (4), pp. 306-324.
  • Narayan, S. and P. K. Narayan (2004), “Determinants of Demand for Fiji’s Exports: An Empirical Investigation”, The Developing Economies, XLII-1, pp. 95-112.
  • Oshikoya, T.W. (1994), “Macroeconomic Determinants of Domestic Private Investment in Africa: An Empirical Analysis”, Economic Development and Cultural Change, 42 (3), pp. 573-596.
  • Ouattara, B. (2004), “Modelling the Long Run Determinants of Private Investment in Senegal”, CREDIT Research Paper, No. 04/05.
  • Pahlavani, M. (2005), “Analysing the Trade-GDP Nexus in Iran: a Bounds Testing Approach”, Economics Working Paper Series, WP 05-25, University of Wollongong, Australia.
  • Pesaran, M.H. and Y. Shin (1999), “An Aoutoregressive Distributed Lag Modelling Approach to Cointegration Analysis”, Chapter 11 in S. Strom (ed.) Econometrics and Economic Theory in 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge University Press.
  • Pesaran, M.H., Y. Shin and R.J. Smith (2001), “Bound Testing Approaches to Analysis of Long Run Relationship”, Journal of Applied Econometrics, 16.
  • Ribeiro, M.B. ve J.R. Teixeira (2001), “An Econometric Analysis of Private Sector Investment in Brazil”, CEPAL Review, 74, pp. 153-166.
  • Sakr, K. (1993), “Determinants of Private Investment in Pakistan”, IMF Working Paper, No.93/30.
  • Seruvatu, E. and T.K. Jayaraman (2001), “Determinants of Private Investment in Fiji”, Reserve Bank of Fiji Working Paper, No. 2001/02.
  • Serven, L. (1998), “Macroeconomic Uncertainity and Private Investment in LDCs: An Empirical Investigation”, World Bank Working Paper.
  • Shrestha, M.B. (2005), “ARDL Modelling Aproach to Cointegration Test”, Proceedings of the 46th Annual Conference of New Zealand Association of Economists, Paper No. 13, Wellington, July 2005.
  • Shrestha, M.B. and K. Chowdhury (2005), “ARDL Modelling Approach to Testing the
  • Financial Liberalisation Hypothesis”, Economics Working Paper Series, No. WP 05-15, University of Wollongong, Australia.
  • SPO - State Planning Organization (2006), Press release about the evaluation of growth rate of year 2005 made by the Minister of State Ali Babacan, Ankara.
  • Taban, S. and A. Kara (2006), “Impact of Public Sector Domestic Borrowing on Private Investment Expenditures in Turkey”, Eskişehir Osmangazi University, Journal of FEAS, 1, (2), pp. 11-26. (In Turkish)
  • Wahid, Abu N. M. and M. Shahbaz (2009), “Does Nominal Devaluation Precede Real Devaluation? The Case of the Philippines”, Transition Studies Review, 16, pp. 47-61.
  • Valadkhani, A. (2004), “What Determines Private Investment in Iran?”, International Journal of Social Economics, 31 (5-6), pp. 457-468.
  • Vergil, H. (2002), “Control of Capital Movements and Its Effects on Private Investment”, Kocaeli University, Journal of Social Sciences Institute, 3 (1), pp. 19-33. (In Turkish)
  • Yılmaz, F. and N. Tezcan (2007), “Impact of Tax Revenue and Fixed Capital Investments on Ekonomic Growth: An Econometric Investigation”, in the proceedings of 8th Turkish Congress on Econometrics and Statistics, 24-25 May, Malatya, Turkey. (In Turkish).
Toplam 31 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Bölüm Makaleler
Yazarlar

Kadir Karagöz

Yayımlanma Tarihi 1 Haziran 2010
Gönderilme Tarihi 12 Aralık 2014
Yayımlandığı Sayı Yıl 2010 Cilt: 11 Sayı: 11

Kaynak Göster

APA Karagöz, K. (2010). Determining Factors of Private Investments: An Empirical Analysis for Turkey. Sosyoekonomi, 11(11). https://doi.org/10.17233/se.83416
AMA Karagöz K. Determining Factors of Private Investments: An Empirical Analysis for Turkey. Sosyoekonomi. Nisan 2010;11(11). doi:10.17233/se.83416
Chicago Karagöz, Kadir. “Determining Factors of Private Investments: An Empirical Analysis for Turkey”. Sosyoekonomi 11, sy. 11 (Nisan 2010). https://doi.org/10.17233/se.83416.
EndNote Karagöz K (01 Nisan 2010) Determining Factors of Private Investments: An Empirical Analysis for Turkey. Sosyoekonomi 11 11
IEEE K. Karagöz, “Determining Factors of Private Investments: An Empirical Analysis for Turkey”, Sosyoekonomi, c. 11, sy. 11, 2010, doi: 10.17233/se.83416.
ISNAD Karagöz, Kadir. “Determining Factors of Private Investments: An Empirical Analysis for Turkey”. Sosyoekonomi 11/11 (Nisan 2010). https://doi.org/10.17233/se.83416.
JAMA Karagöz K. Determining Factors of Private Investments: An Empirical Analysis for Turkey. Sosyoekonomi. 2010;11. doi:10.17233/se.83416.
MLA Karagöz, Kadir. “Determining Factors of Private Investments: An Empirical Analysis for Turkey”. Sosyoekonomi, c. 11, sy. 11, 2010, doi:10.17233/se.83416.
Vancouver Karagöz K. Determining Factors of Private Investments: An Empirical Analysis for Turkey. Sosyoekonomi. 2010;11(11).