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Transportation Expenditures, Growth and International Trade

Author

Listed:
  • Yesim Kustepeli

    (Department of Economics, Faculty of Business, Dokuz Eylül University)

  • Yaprak Gulcan

    (Department of Economics, Faculty of Business, Dokuz Eylül University)

  • Sedef Akgungor

    (Department of Economics, Faculty of Business, Dokuz Eylül University)

Abstract

One of the processes that are alleged to constitute globalization is trade and investment. Improvements in highways, railways and ports facilitate the movement of the goods thus leading to higher standards of living for the people of the whole globe. Although infrastructure is indispensable to achieve the main development targets in developing countries, such as urbanization, industrialization, export growth and sustainable economic development (Kim, 2006), the relationship between infrastructure expenditures, economic growth and international trade is inconclusive. Boarnet (1995) suggests that public investment is productive if it gives some places a local competitive advantage over other places. The aim of the study is to investigate the effects of investments on highway infrastructure in Turkey, on Turkey’s international trade and economic growth for the period of 1970-2005. Results from cointegration and causality analysis suggest that there is only a weak relationship between highway transportation infrastructure, economic growth and international trade in Turkey.

Suggested Citation

  • Yesim Kustepeli & Yaprak Gulcan & Sedef Akgungor, 2008. "Transportation Expenditures, Growth and International Trade," Discussion Paper Series 08/03, Dokuz Eylül University, Faculty of Business, Department of Economics, revised 14 Apr 2008.
    • Handle: RePEc:deu:dpaper:0802
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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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