Public capital and social infrastructure in regional development: An empirical study for Turkey

WOS: 000302001000001Public capital and social infrastructure in regional development: An empirical study for Turkey The role of state in regional economies went beyond the Keynesian perspective, and the development economics, flourished starting from 1950's, evolving by the influences of various schools, has kept discussing around the question to which sectors should public investment be directed rather than the necessity of it. According to the understanding of new regional development, the investments for developing social infrastructure and human capital are as important as for public production and physical infrastructure. In fact, the former group of investments is essential to benefit from the latter This study analyzes the effects of public capital on the income of provinces in Turkey for the 19872001 periods. There is evidence in favor of high and positive effects of public investment in physical infrastructure in developed provinces with lower human development growth. Public investments in social infrastructure have positive effects in developing provinces