The economic impact of public expenditure growth: The case of Turkey

The aim of this study was to examine the effect of public spending on economic growth in Turkey in the short and long term. For this purpose, public expenditures and economic growth were initially considered theoretically. Later, between the years 1999-2017 is given to studies that examined the relationship between public spending and economic growth in Turkey. Based on data for the 1998-2016 period in Turkey's economy it has investigated the relationship between public spending and economic growth. In the study; current, investment and transfer expenditures from public expenditures, especially from the time series, were examined within the unit root tests such as Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and Generalized Least Square (GLS) and the Autoregressive Distributed Lag (ARDL). In addition, Granger and Toda-Yamamoto causality tests were conducted to determine the relationship between public expenditure and economic growth. According to the findings of the study, public spending increased economic growth in the long term although there was no meaningful relationship between public spending and economic growth in the short term. Keywords: Public Expenditures, Public Expenditure Approaches, Economic Growth, Economic Growth Models.