The Impact of Public Capital on the Efficiency of Private Manufacturing Industry at the Regional Level

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1. Using the production function approach has been questioned in
the literature, because elasticity estimated in most commonly used
Cobb-Douglas production function is sometimes too big to be credible.
These studies also have been critisied for contatining some
econometric problems (see Kim and Lee 2002 and Fernandez and
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2. Since data are not available for the other sectors at the regional level,
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3. Although there are 26 regions at NUTS II level in Turkey, we had to
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4. As the data related to manufacturing industry is only available until
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8. Total horsepower of installed equipment can also be used as a proxy
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END NOTES
I would like to thank Ege University, Research and Application Centre of
Science and Technology for the financial support they gave for this
Project under grant İKT007.
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Metin KARADAĞ
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