Causality relationship between public expenditures and macroeconomic indicators: BRICS-T countries

Macroeconomic dynamics are the bases in the evaluation of the macroeconomic performance of countries and it is possible that these variables interact with each other. In this study, the causality relationship between public expenditures and other fundamental macroeconomic variables has been examined. As a result of the empirical study, a unidirectional causality relationship at the % 5 significance level and a bidirectional causality relationship at the % 10 significance level has been determined between the years 1995-2019, in particular for the BRICS - T countries. A unidirectional causality was found between unemployment and public expenditures. No statistically significant causality relationship was observed between inflation and public expenditures and a bidirectional causality relationship was found between savings and public expenditures.