The effect of government expenditures and government debts on employment: A study on OECD countries

In this thesis, the effect of government expenditures and government debts on employment are analyzed on OECD countries. The study consists of 3 parts. In the first part, the general definition, classification of government expenditures, the reasons for the increase and the related opinions, what are the effects of government expenditures, and theoretical explanations about them will be given. In the second part, information about the definition, causes and types of government debt and the effects of government debt will be given. In the third section, data on government expenditures, government debt, gross domestic product and gross fixed capital formations for the years 1995-2017 obtained from the World Bank and OECD databases of selected OECD countries. They are graphed and interpreted. In addition, Panel Data Analysis was performed as an econometric analysis in the study. As a result of the analysis, it is seen that when fixed capital formation is increased by 1% in OECD countries, employment increases by 0.08%, and when government debt is increased by 1%, it is seen that it decreases employment by 0.04%.