The relation between the determinants of public construction expenditures and economic growth in Turkey

The objective of this study is to analyze the relation between the determinants of the public sector?s construction expenditures and economic growth. In the study, determinants of construction expenditures are evaluated under two main headings by classifying them as building and non-building, in other words building and infrastructure construction expenditures. In the study, the relation between the determinants of the public sector?s construction expenditures and economic growth has been analyzed by using the quarterly data of Turkey between the years 1980-2007. Empirical findings are based on time series analysis using the data of public building construction expenditures, public infrastructure construction expenditures and GDP.The findings of the research obtained by applying the cointegration test reveal that there is a long-run relation between the rate of public infrastructure expenditures to GDP and GDP growth rate, whereas there is not a long-run relation between the rate of public building expenditures to GDP and GDP growth rate.