The relationship between openness and public revenues and public spending in Turkey

The situations faced by the countries that opened their economies to the rest of the world with globalization process have been addressed in several studies and the relationship of openness with macroeconomic indicators such as growth and inflation are often examined by using different criteria. Nevertheless, there is no study that analyzes the relationships between openness and public revenues or public spending in a comprehensive manner in studies which examines existence of the relationship between the variables. The purpose of this study is to investigate the existence of this relationship between the variables for Turkey. During the preparation of this study, existing literature is scanned for the first conceptual two sections, and the existence of the relationship between openness and tax revenues and public spending -which are subject to a binary classification as reel expenditures and transfer expenditures- between the years of 1980-2010 for Turkey were analyzed using the least squares method. As a result of this study, it is concluded that there exists a relationship between openness and tax revenues, reel expenditures and transfer expenditures in Turkey for the given period in line with those offered in theory.