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Borrowing has been inevitable for states. Large-scale public investments in many fields such as education, health, agriculture, infrastructure and energy are mostly possible by borrowing. In particular, making room for the private sector through infrastructure investments helps growth in the long run and it provides the opportunity for crowding-in of private sector investments. At the same time, public debt can lead to the crowding-out of private and public investments. At this point, the question of whether public debt crowding-out private and public sector investments is important for policymakers and economic circles. In this study, the effect of public debt on private and public sector investments was analyzed with the ARDL model in Turkey for the years 1986-2020. Our empirical findings confirm the crowding-out hypothesis. Accordingly, it has been observed that the public debt has a statistically significant and negative effect on private and public sector investments in the short and long term in Turkey. Accordingly, in order not to crowding-out private and public sector investments, it is recommended that public debts be kept at a reasonable level and used in areas that encourage the private sector. [ABSTRACT FROM AUTHOR]