The effect of social expenditures on poverty in Turkey: An empirical investigation

Poverty, which is a problem as old as the history of mankind, remains it's existence and importance in today's global conditions. On the one side there are developed countries (Luxemburg, Norway, Liechtenstein, Monaco) whose GDP per capita is over $100,000 on the other side there are lots of countries (Eritrea, Kenya, Afghanistan, Nepal, Bangladesh) whose GDP per capita is under $1,000. Also, the income gap between the rich and the poor is beyond the accepted limit within all countries. Because of the importance of the subject, there are several studies in the literature about poverty and poverty reduction policies. While the phenomenon of poverty and its causes are being examined, also anti-poverty policies are created and implemented in the context of regional, national and supra-national institutions. There are common findings among various studies, showing that in the globalizing world poverty is not just a cronic problem of under-developed or developing countries, also nowadays all countries are effected deeply from poverty, proving it is a global problem. The purpose of this study is to investigate the effects of social expenditures on poverty level in fighting against poverty. In this context, social expenditure and poverty rate data of Statistical Territorial Units (26 regions) for the years 2004-2011, were analyzed using panel data analysis. This study concludes that social expenditures affect poverty by reducing poverty in the short run, also, fostering poverty in the long run. Keywords: Poverty, Social Expenditures, Social Policies, Human Capital, Social Security Expenditures, Regional Analysis