Causality between the Construction Sector and GDP Growth in Emerging Countries: The Case of Turkey

This study empirically investigates the relationship between construction investment and GDP growth in emerging countries. Incentives applied to the construction sector are affecting growth very quickly. However, the construction industry's growth in a sluggish economy is shrinking more than the GDP. Using a Granger causality test for 2000 Q1 to 2016 Q2 period's quarterly data, we examine whether there is a systematic relationship between construction investment and economic growth. In consideration of these findings, the impact on economic growth, as well as economic growth of construction investments in Turkey, should be noted as effective for construction spending.