Validity of compensation and efficiency hypothesis in Turkey

Globalization is a process that effects all life and all economic indicators from different aspects. Local economies and directors are exposed to external influences and shocks with globalization. The state undertakes the protection of the individuals exposed to shocks. The aim of this study is to analyse and test the relationship between commercial gap ratio and public expenditures belonging to the 1961-2014 period in terms of compensatory effect and effectiveness hypothesis. In this context, the importance of compensatory effect and effectiveness hypothesis for Turkey was studied. Internet research is the large part of the study. According to the findings compensatory in Turkey has reached to the effect that blood is available. According to the findings, it was concluded that the compensatory effect is valid in Turkey. Keywords: Compensatory Effect, Effectiveness Hypothesis, Commercial Gap, Public Expenditures. Keywords: Compensatory Effect, Effectiveness Hypothesis, Commercial Gap, Public Expenditures