Investigating the relationship between economic growth and public expenditures: An application on the example of Turkey

In Turkey, research into the relationship between public spending and economic growth began to accelerate after the 1990s. Public spending, and its impact on economic growth, makes the issue important. Although there are numerous studies on the Turkish economy, the results are different because they cover different periods and use different methods. In this case, the use of various periods, techniques and variables in the investigation of the said relationship preserves the timeliness of the research. Too much empirical research has been done on the subject. A literature study of the relationship between them shows that these activities are concentrated on the Keynes and Wagner Hypotheses. Wagner argues that their relationship is moving from economic growth to public spending, while Keynes claims that they are moving from public expenditure to economic growth. The study aims to examine the relationship between public spending and certain macroeconomic factors by examining an example of the Turkish economy. The data examines the link between pure national harvest and public spending in Turkey during the period 2008-2022. Keywords: Economic Growth, Net National Deficit, Public Spending, Granger Causality Test and VAR Analysis