Role of Construction Sector in Economic Growth: the Case of Turkey (1987-2010)

It is generally accepted that there is a close relationship between aggregate construction investments and economic growth. the construction industry, especially for developing countries such as turkey, plays a very important role in economic growth. this topic has been examined by many researchers so far and the construction industry has been concluded to be associated closely with economic growth. in this study to be made by using data from the period 1987-2010 of turkey, it is attempted to ascertain whether there is a systematic relationship between construction investments of public and private sector and economic growth. in the result of the study being used granger causality test, it was determined that there was a unidirectional causality relationship both running from public sector construction investments to gdp and running from public sector construction investment with gdp to the private sector construction investments. in the light of these findings, it can be said that as construction investments to be made in turkey have influence on economic growth, economic growth also to be effective on construction spending.