Abstract:

This paper investigates that the effects of total real public investments made to Artvin upon the real per capita income in Artvin. The relationship between public investments and income is analyzed using Granger causality and cointegration tests. Also, the analysis has covered the period of 1988-2017, based on annual observations. According to the results of Granger test, there is a causality relationship at 5% level of statistically significance from public investments to the income of Artvin citizens, whereas there isn't any significant causal relationship from income to public investments. A long-term relationship hasn’t been determined between public investments and per capita income in Artvin in Johansen cointegration test. Key Words: Public Investments, Income, Granger Causality, Johansen Cointegration JEL Classification: H50, R11, O47