ABSTRACT
Infrastructure services are the backbone of economic growth and social welfare. The present study assesses whether government intervention works in the public–private partnerships (PPPs) in the transportation sector in Turkey. The PPPs in the transportation sector may become factors that cause public intervention according to the nature of the agreement and increase the role of government in the economy. The treasury-guaranteed PPP in Turkey may lead the economy to a conjuncture in which the public may increase taxes to prepare for worst-case scenarios in the long term and decrease public spending. As a matter of fact, in such a scenario, a treasury guarantee brings about the risk of foreign borrowing, the debt burden of the government, and the need for following a strict fiscal policy.
