The Relationship between Transportation Infrastructures Investments and Economic Growth in Turkey

Abstract

This study investigates the short run and long-run relationship between highway and railway transportation infrastructure investment and economic growth in Turkey from 1970 to 2017 by ARDL bound test estimation. The reason of choosing Autoregressive Distributed Lag Boundary Test (ARDL) approach is that some of the variables are stationary at level and some of them are stationary at first differences. According to ARDL test results, it is concluded that there is a strong and significant relationship between highway and railway infrastructure investment and economic growth in the short and long term in Turkey.