Abstract:

Public spending is often used as a financial policy tool with its stimulating effect on economic growth. Depending on the nature of public spending, there are different impacts on the economy. The purpose of this study is to identify the relationship between public infrastructure investments and regional income according to geographical regions in Turkey using the classification of public spending defined by Hansen (1965a, 1965b). For this purpose T.C. According to the Presidential Strategy and Budget Presidential Public Investments, the sectoral distribution database and the statistics of the Turkish Statistical Bureau of the Regional Non-Clean National Asset (GDP) statistics have been estimated for the years 2004-2017. Panel causality analysis, which is a method widely used in literature to test the relationships specified in the study, has been adopted. The results of the analysis show that social and economic public infrastructure investments have different effects by region. This result is consistent with our assumptions. The findings indicate that the increase in GDP in all regions has again led to a significant increase in public economic and social infrastructure spending at regional level.

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