Fiscal policies to achieve inclusive growth target: A research on Turkey

The growth model in which the opportunities created by economic growth are distributed equally to all segments of the society and everyone in the society benefits from the opportunities created is called inclusive growth. To have inclusive growth it is necessary to economic growth also decrease income inequality, poverty and unemployment. Fiscal policies are an effective tool to achieve these three basic goals. In this study it is aimed to investigate at the period of 2006-2018 the inclusive nature of Turkey's growth performance and the effects of public education, health, transfer expenditures and tax policies on the inclusion of growth. Five different indices are created to measure inclusive growth. Then examined the effects of selected fiscal policies on these created five inclusive growth indices. According to the findings obtained, inclusive growth index which was created with the reference of (McKinley, 2010) study, education and health expenditure have reducing effect on inclusive growth and transfer expenditure has inclusive growth enhancing effect. According to weighted average index health expenditure has inclusive growth reducing effect and indirect taxes have inclusive growth enhancing effect. According to equal weight and cropped average indices health expenditures and indirect taxes have reducing effect on inclusive growth. In the inclusive growth index formed by the average of three indices, found no significant impact of the selected fiscal policies. Contribution of this study to the literature is to measure inclusive growth in Turkey inclusive growth indices are created with different methods also tested the effects of public policies on these indices.