Akademik Veri Yönetim Sistemi
ISTANBUL UNIVERSITY JOURNAL OF FACULTY OF POLITICAL SCIENCES-SIYASAL BILGILER FAKULTESI DERGISI, sa.52, ss.35-59, 2015 (ESCI)
This paper studies whether or not the government investment expenditures affect the growth rate of GDP per capita in the long term with reference to production function with constant returns to scale and one sector within the context of endogenous growth theory that emerged in 1980s. Endogenous growth models, unlike neoclassical growth models, argue that productive government expenditures may affect the growth rate of GDP per capita in the long term. This argument has been studied through conditional ECM approach (ARDL bounds test) for the Turkish economy in the period 1980-2013. The results indicate that ratio of total government investment do not affect the growth rate of GDP per capita in the long term. Increasing of ratio of government equipment investment has an effect on long-nm per capita gdp growth, but however, this effect is smaller than Solow's prediction.