Pro-poor growth analysis based on social expenditures perspective

Economic growth doesn't benefit same in all segments of society. Growth is a "trickle down" if rich benefit more than poor. This process triggers income inequality and poverty. On the other hand, pro-poor growth means that the poor benefit more from the growth It has been observed that various definitions and measurement methods have been developed on pro-poor growth in the 2000 which called "inclusive growth" in the 1990s. Pro-poor growth implies a desirable growth pattern where poverty is reduced and income inequality is improved. In this study, between 2007-2018 in Turkey and sub-regions of Turkey; pro-poor growth was measured using the Pro-Poor Growth Index, Poverty Equivalent Growth Rate and Growth Incidence Curve methods. In addition, the contribution of public social spending to pro-poor growth is analyzed. The growth and social expenditure impact of the change in poverty rates has been demonstrated using Panel Data analysis. According to results, pro-poor growth occurring in Turkey in 2007 for the period 2008-2012 shows a complete instability. Between 2012 and 2014, the pro-poor growth recovered, but in 2015 and beyond "trickle-down effect" growth occurred. It has been observed that the share of social expenditures made by the central government that goes directly to the poor is very low and the expenditures cannot reach the target group. It was also observed that the regions with the worst pro-poor growth performance in general are TR1 (Istanbul) and TR2 (West Marmara) sub-regions.