Abstract:

Purpose- The purpose of this study is to investigate the relationship between Public Private Partnership (PPP) activities and their impact on Gross Domestic Product (GDP). Methodology- The study employs a time series dataset of Turkey that includes the number of PPP activities and GDP between 1990-2014. The dataset was analyzed by Vector Auto Regression (VAR) method. Findings- The analysis reveals that there is only a weak association between GDP and PPP. Conclusion- The reason of this result might be related with the other macroeconomic factors that affect the growth of GDP as a proxy of overall economic development.Moreover, policy makers should consider other benefits of PPP on the way of making positive contributions to the budget constraints, heavily indebtedness, and lack of sufficient funds of countries.

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