Abstract This study investigates the determinants of private sector investments in Turkey with a focus on democracy. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach and two different democracy indices along with the other determinants of private investment, we estimated a private investment function for the 1975-2014 period. Our main finding is that democracy has a profound positive impact on private investment. Moreover, the results show that: (i) public investment is a substitute to private investment; (ii) macroeconomic instability dissuades private investment; (iii) real interest is a serious impediment to private investment; (iv) financial development and GDP growth rate stimulate private investment.

中文翻译：

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土耳其私人投资的决定因素：审查民主的作用

摘要本研究调查了土耳其私营部门投资的决定因素，重点是民主。使用自回归分布滞后（ARDL）边界检验方法和两个不同的民主指数以及私人投资的其他决定因素，我们估算了1975-2014年期间的私人投资函数。我们的主要发现是，民主对私人投资产生了深远的积极影响。而且，结果表明：（i）公共投资可以替代私人投资；（ii）宏观经济不稳定阻碍了私人投资；（iii）实际利益严重阻碍了私人投资；（iv）金融发展和GDP增长率刺激了私人投资。