AN ANALYSIS OF THE RELATIONSHIP BETWEEN SAVING, INVESTMENT, AND INSTITUTIONAL QUALITY: THE CASE OF TURKEY

45234

It is generally accepted that institutions set the framework of the social and economic lives of countries and affect their economic performance. The economic performance of a country is largely determined by the incentive structure formed by institutions and institutional structures. The incentive structure may affect economy directly and indirectly by influencing many factors such as saving, investment, labor, technology, production, and change. This study analyzed the effects of the variables of saving, institutional quality, and public borrowing in Turkey for the 1984-2014 period on the level of investment through ordinary least squares (OLS). The results show that an increase in public borrowing leads to a decrease in investments and that savings positively affect investments. Further, they indicate that a rise in the level of institutional quality plays a prominent role in the increase of investments both directly and indirectly.

119

Saving , Investment , Institutional Quality , OLS

Abant Sosyal Bilimler Dergisi

139

Abant Sosyal Bilimler Dergisi