The Impact of Infrastructure Expenditure Types on Regional Income in Turkey

Infrastructure investments that enhance regional economic performance and competitiveness fall into two categories: economic and social. Economic infrastructure investments (i.e. highways, power generation and water facilities) can directly increase regional production potential, and social infrastructure investments (i.e. education and healthcare) can aid regional income by improving labour productivity. This study identifies how different types of infrastructure expenditures affect regional incomes in Turkey. As per results drawn from data of 2004-08, infrastructure expenditures enhance regional income in Turkey. Social infrastructure investments and education expenditures demonstrate greater impact on regional income.