Composition of public investment and economic growth: evidence from Turkish provinces, 1975-2001

Yilmaz, Gökçen

doi:10.3326/pse.42.2.10.

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Composition of public investment and economic growth: evidence from Turkish provinces, 1975-2001

Gökçen Yilmaz*

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https://doi.org/10.3326/pse.42.2.10

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Table 1
Descriptive statistics

Variable		Mean	Std. Dev.	Min.	Max.	Obs. ^ɫ
γ	overall	0.018	0.032	-0.091	0.178	N=1474
	between		0.012	-0.019	0.049	n=67
	within		0.030	-0.080	0.161	T=22
*θ_t&c*	overall	0.148	0.161	0.000	0.929	N=1474
	between		0.086	0.022	0.427	n=67
	within		0.137	-0.183	0.874	T=22
*θ_en*	overall	0.267	0.278	0.000	0.987	N=1474
	between		0.200	0.044	0.830	n=67
	within		0.195	-0.563	1.005	T=22
*θ_ed*	overall	0.216	0.144	0.000	0.887	N=1474
	between		0.078	0.023	0.357	n=67
	within		0.122	-0.077	0.790	T=22
*θ_c&s*	overall	0.300	0.184	0.004	0.915	N=1474
	between		0.109	0.068	0.511	n=67
	within		0.148	-0.139	1.072	T=22
*θ_he*	overall	0.069	0.085	0.000	0.891	N=1474
	between		0.044	0.011	0.259	n=67
	within		0.073	-0.147	0.867	T=22
*g/y*	overall	0.037	0.063	0.002	0.873	N=1474
	between		0.040	0.009	0.204	n=67
	within		0.048	-0.159	0.735	T=22
η	overall	0.016	0.015	-0.035	0.101	N=1474
	between		0.012	-0.019	0.046	n=67
	within		0.008	-0.026	0.071	T=22
*k/y*	overall	0.013	0.027	-0.005	0.377	N=1474
	between		0.019	0.000	0.092	n=67
	within		0.019	-0.078	0.371	T=22

^†The summary statistics are expressed in decimal numbers. Thus, “0.018” should be read as “1.8%”.

^ɫObs.: The number of observations; N: the number of observations in the sample; n: the number of panels (provinces) in the sample; T: the number of time periods (years) in the sample.

Table 3
Composition of public investment and economic growth: random-effects technique-standard errors corrected for heteroscedasticity and serial correlation

	(1)	(2)	(3)	(4)	(5)	(6)
*θ_en*		0.004
*θ_en*		(0.006)
*θ_t&c*			-0.016^†
*θ_t&c*			(0.007)*
*θ_ed*				-0.004
*θ_ed*				(0.010)
*θ_he*					0.011
*θ_he*					(0.016)
*θ_c&s*						0.006
*θ_c&s*						(0.008)
*g/y*	0.089	0.080	0.084	0.085	0.091	0.092
*g/y*	(0.016)**	(0.020)**	(0.016)**	(0.017)**	(0.017)**	(0.018)**
η	-0.082	-0.083	-0.088	-0.083	-0.085	-0.084
η	(0.129)	(0.127)	(0.127)	(0.125)	(0.129)	(0.129)
*k/y*	0.102	0.105	0.105	0.106	0.103	0.100
*k/y*	(0.032)**	(0.033)**	(0.032)**	(0.033)**	(0.032)**	(0.032)**
*Year Dummies (T_j)^††*
Constant	0.004	0.004	0.006	0.005	0.003	0.002
Constant	(0.003)	(0.003)	(0.003)	(0.005)	(0.004)	(0.005)
Observations	1474	1474	1474	1474	1474	1474
Number of panels	67	67	67	67	67	67
Wald	771.65	832.68	829.83	773.86	829.34	797.86
Prob> Wald χ²	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000
R²	0.17	0.17	0.18	0.17	0.17	0.17
Mean VIF^†††	1.15	1.29	1.24	1.33	1.20	1.40

Standard errors in parentheses, * significant at 5%; ** significant at 1%.

^† The coefficients show the effect of a one-unit change in the value of an indicator on the dependent variable. The values of the variables are expressed in decimal numbers in table 1. This means that a unit change in table 3 corresponds to a 100% change in the shares of public investment.

^††The results for year dummies are not reported in the table for conciseness.

^†††VIF: Variance Inflation Factor.

Table 4
Composition of public investment and economic growth: pooled OLS technique-standard errors corrected for heteroscedasticity, and serial correlation both within and between panels

	(1)	(2)	(3)	(4)	(5)	(6)
*θ_en*		0.009†
*θ_en*		(0.004)*
*θ_t&c*			-0.019
*θ_t&c*			(0.008)*
*θ_ed*				-0.015
*θ_ed*				(0.011)
*θ_he*					0.013
*θ_he*					(0.010)
*θ_c&s*						0.005
*θ_c&s*						(0.006)
*g/y*	0.074	0.054	0.068	0.064	0.077	0.079
*g/y*	(0.008)**	(0.008)**	(0.007)**	(0.007)**	(0.009)**	(0.013)**
η	-0.091	-0.093	-0.095	-0.104	-0.091	-0.095
η	(0.098)	(0.097)	(0.101)	(0.101)	(0.099)	(0.101)
*k/y*	0.167	0.165	0.166	0.163	0.168	0.166
*k/y*	(0.060)**	(0.057)**	(0.055)**	(0.057)**	(0.059)**	(0.060)**
*Year Dummies (T_j)^††*
Constant	0.003	0.003	0.006	0.009	0.002	0.001
Constant	(0.002)	(0.002)	(0.002)**	(0.003)**	(0.002)	(0.004)
Observations	1474	1474	1474	1474	1474	1474
Number of panels	67	67	67	67	67	67
F	35.98	26.60	41.45	30.92	32.05	55.26
Prob > F	0.0000	0.0000	0.0000	0.0000	0.0000	0.0000
R²	0.17	0.18	0.18	0.18	0.17	0.17
Mean VIF^†††	1.15	1.29	1.24	1.33	1.20	1.40

Standard errors in parentheses, * significant at 5%; ** significant at 1%.

^† The coefficients show the effect of a one-unit change in the value of an indicator on the dependent variable. The values of the variables are expressed in decimal numbers in table 1. This means that a unit change in table 4 corresponds to a 100% change in the shares of public investment.

^††The results for year dummies are not reported in the table for conciseness.

^††† VIF: Variance Inflation Factor.

This is an Open Access article distributed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC-BY-NC) which permits non commercial use and redistribution, as long as you give appropriate credit, provide a link to the license, and indicate if changes were made.

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