The effect forms of public fixed capital investments on private fixed capital investments in Turkey

This study aims to contribute to effective use of resources and effective investment planning by determining the sectors which aide each others growth, by evaluating the sectors case by case rather than gathering them into main sectors and deciding their value. In this study, Investment concept has been analyzed in the period 1963 and 2015 with respect to the public and private fixed capital investments; through regarding some economic schools point of view, important developments in the domestic economy and fixed capital investments in the country. In order to avoid repetition, sectors are not mentioned individually. The sectors which have more than 5% of public investments, namely agriculture, manufacturing, energy, transportation and education sectors are examined. By using Eviews 10 program, simple regression analysis was performed by using ROBUSTLS (Robust least squares) method. In these five sectors, both the magnitude and the nature of effects of public fixed capital investments on private sector fixed capital investments were found. According to the findings, public fixed capital investments do not have a negative impact on private sector investments, therefore, we can conclude that the public sector should continue its investments in the areas where the public sector is effective and inspire the private sector investments. Keywords: fixed capital investment, economic growth, savings