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When do public transport investments really matter? A CGE analysis for Türkiye

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  • Volkan Recai Cetin

Abstract

In this study, the economic impact of public transport investments which have been extensively used as an investment policy tool in Türkiye is analysed from different fiscal policy and financing perspectives by employing a dynamic computable general equilibrium (CGE) model. The impact of public transport investments on key economic performance indicators of real GDP growth and unemployment and macroeconomic vulnerability indicators were investigated in alternative scenarios involving such different financing mechanisms as tax revenues, external borrowing, and public–private partnerships. The results assert that public transport investments stimulate economic growth and employment. Nevertheless, the financing mechanism is an essential factor that determines the level of the impact, its sustainability and in some cases its direction.

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  • Volkan Recai Cetin, 2024. "When do public transport investments really matter? A CGE analysis for Türkiye," Economic Systems Research, Taylor & Francis Journals, vol. 36(1), pages 1-23, January.
    • Handle: RePEc:taf:ecsysr:v:36:y:2024:i:1:p:1-23
    DOI: 10.1080/09535314.2022.2122407
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