The relationship between public expenditures, inflation and economic growth "Turkey example"

In this study, which the effect of public expenditure on economic growth and inflation in Turkey is aimed to be determined , information about the subject is first given by providing a theoretical explanation. Subsequently, public expenditure, economic growth and inflation data are tested with the help of an econometric model. First, the definitions and scope of public expenditure found in the literature are presented. The subject is explained in a theoretical context by discussing the reasons for the increase in public expenditure and the effects of these expenditures. At the same time, in the second section, general information on inflation is provided and the relationship between inflation and public expenditure is explained in a theoretical framework. In the third section, the concept of economic growth is defined; determinants and measurement of it and the relationship between public expenditure and economic growth models are explained theoretically. In the fourth part of the study, econometric modeling is carried out using public expenditure, inflation, and economic growth data for the period 2007-2021. The effects of public expenditure as an economic policy tool on inflation and economic growth are tested with the help of this econometric modeling. After commentating the theoretical relationship between public expenditure, economic growth, and inflation; structural equation modeling is included. The interaction between economic growth and inflation is also determined and the net effect of public expenditure and total public expenditure on the targeted economic growth and inflation is calculated. Net effect coefficients for Turkey are presented with the help of the findings.