The effect of public expenses on economic development: A practice on Turkey's economy

ABSTRACTTHE EFFECT OF PUBLIC EXPENSES ON ECONOMIC DEVELOPMENT:A PRACTICE ON TURKEY?S ECONOMYMurat MEREDepartment of EconomyAfyon Kocatepe University, The Institute of Social SciencesAugust 2006Advisor: Yrd. Doç. Dr. Mehmet KARAGÜLIn this study, the relationship between the economical development and thepublic expenses on education, health and infra-structure during the 1963-2004 period inTurkey has been dealt with. In order to test this relationship, the VAR modelling methotand the Engle-Granger casualty testing have been used and the effect of public expenseson education, health and infa-structure has been analysed. According to the findingsfrom econometric studies, it has been found out that the expenses on education, healthand infra-structure have been inefficient to explain the economic development.