Public Policy and Private Investment in Turkey

Chhibber, Ajay; Wijnbergen, Sweder van

doi:10.1016/b978-0-444-89395-6.50013-9

Cited by 24 publications

(25 citation statements)

References 4 publications

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“…Regarding the impact of financial liberalisation on investment, Günçavdı et al (1998) and(1999) argue that the Turkish economy has benefited from the reform policies in the long run by relaxing credit constraints. Earlier studies (Ritenberg, 1991, Chhibber and van Wijnbergen, 1992, Uygur, 1993 have also found similar results. Atiyas et al (1993), on the other hand, report that although financial liberalisation was successful in eliminating exogenous constraints created by interest rate controls, credit constraints still operate in the banking sector, basically because of asymmetric information and the agency cost problem.…”

Section: Introductionsupporting

confidence: 76%

“…Some studies in the Turkish literature have evaluated the performance of financial liberalisation (Akyüz, 1990, Ritenberg, 1991, Chhibber and van Wijnbergen, 1992, Uygur, 1993, Atiyas et al, 1993, 1998 and Günçavdı and Küçükçifçi, 2001). Akyüz (1990), for example, shows that the financial reforms were not accompanied by any significant change in the financing behaviour of the corporations and did not lead to a cheap cost of investment.…”

Section: Introductionmentioning

confidence: 99%

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Financial Reforms and the Decomposition of Economic Growth: An Investigation of the Changing Role of the Financial Sector in Turkey

Günçavdı¹,

Küçükçifçi²

2005

Review of Middle East Economics and Finance

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Turkey undertook a far-reaching structural adjustment programme in 1980. As an integral element of this programme, financial liberalisation aimed at increasing domestic savings and directing them efficiently towards financing investment projects, which will be likely to have positive impacts on economic growth. After 20 years the performance of these reforms in financial markets is still a matter of concern among academics. The aim of this paper is to examine the role of the financial sector in the whole economy and to assess the sources of gross output of the sector. By doing that we are able to connect financial reforms with different source of growth, and analyse the impacts of reforms on the production of financial services in the pre-and pro-liberalisation periods. To accomplish this aim, we introduce a new methodology, which is based upon the Leontief's input-output models. The results imply that the production sector of the Turkish economy has increasingly become independent from the use of financial service produced by the banking and insurance sector particularly in the post-reform period. JEL Classification: D57, F14, O16, R15

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Section: Introductionsupporting

confidence: 76%

Section: Introductionmentioning

confidence: 99%

Financial Reforms and the Decomposition of Economic Growth: An Investigation of the Changing Role of the Financial Sector in Turkey

Günçavdı¹,

Küçükçifçi²

2005

Review of Middle East Economics and Finance

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“…This means that the bigger the government the more corpulent investments available facilities and infrastructure needed by the private sector to undertake productive activities, including investments [1], [2], [3], [12], [20]. The availability infrastructure is a factor supporting the activities of domestic and foreign, and national economy.…”

Section: Determinants Of Private Investmentmentioning

confidence: 99%

“…The increase of banks role in financing investment through bank loans to business or real sector investment would increase the level of investment and economic growth [3]. There was a relationship between the availability of debt finance for investment purposes with the growth of private investment and economic growth [19].…”

Section: Determinants Of Private Investmentmentioning

confidence: 99%

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Determinants of Private Investment and The Effects on Economic Growth in Indonesia

Suhendra¹,

Anwar²

2014

GSTF J Bus Rev

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Abstract-Investment is important part of development economic, especially on increase of economic growth. Through investment, various of production facilities will be provide, thus will give optimally production output and value added, as a result can improve the economic growth. Investment activities can be done by two main sectors, government and private. Majority of government investment commonly to finance physical and nonphysical development that could not be conducted by society. Lack of capital in government sector influence low of encourage on physical infrastructure as driving of business and economic activities. That condition will impact on private investment. This study will explain the effect of government investment and another economic variables, such as economic growth, investment credit, interest rate, inflation and exchange rate, and the influence of private investment on economic growth in Indonesia

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On the impact of exchange rate uncertainty on private investment in Ghana

2019

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High levels of private investment are correlated with higher economic growth and development across countries, but questions remain whether this relationship is sustainable given the high levels of exchange rate uncertainty in developing economies albeit other macroeconomic instabilities. This paper examines empirically the impact of real exchange rate uncertainty on private investment in Ghana. We, thus, apply the accelerator theory to investigate the contributing effect of real exchange rate uncertainty on the movement of private investment from the economic standpoint of an import‐dependent economy such as Ghana. The study employs annual time series data from 1980 to 2016. Moreover, we adopt the autoregressive distributed lag model of cointegration where we find evidence of a long‐run positive relationship between positive private investment and real exchange rate uncertainty as well as trade openness. The short‐run evidence provides a confirmation of the impact of inflation, trade, and real exchange rate uncertainty on private investment. Specifically, our results show that there is a positive pass‐through effect from real exchange rate uncertainty to private investment decision in resource allocation. Shocks from lending rate and terms of trade were found to exhibit negative effects on private investment in the short and long run. As a matter of policy, it is imperative for policymakers in developing economies to consider the effect of exchange rate and terms of trade associated with bilateral trade and investment‐related agreements to minimize the effects of contemporaneous shocks from uncertainties.

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Public Policy and Private Investment in Turkey

Cited by 24 publications

References 4 publications

Financial Reforms and the Decomposition of Economic Growth: An Investigation of the Changing Role of the Financial Sector in Turkey

Financial Reforms and the Decomposition of Economic Growth: An Investigation of the Changing Role of the Financial Sector in Turkey

Determinants of Private Investment and The Effects on Economic Growth in Indonesia

On the impact of exchange rate uncertainty on private investment in Ghana

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