Transfer expenditures and economic performance relationship in Turkey (2006-2018)

The aim of this study is to examine the development process of transfer expenditures and to examine the relationship of these expenditures with economic performance and economic growth. In the first part, transfer expenditures are defined and then their subclassifications are given. Transfer expenditures have been examined by considering the definition and classification method accepted in the literature. It is more difficult to classify transfer expenditures in terms of their structure compared to other types of expenditures. How transfer expenditures are classified is as important as which types of expenditures are accepted as transfer expenditures in the budget. For this reason, transfer expenditures were handled according to the budget allocation and analyzed separately. In the second part, the development process of transfer expenditures is discussed both in the world and in Turkey. The development of transfer expenditures in the world, the structure of transfer expenditures of developed, developing and underdeveloped countries and the effects of these expenditures are mentioned. The development process of transfer expenditures in Turkey has been analyzed under three separate headings. This distinction, starting with the transition to the planned period and then taking into account the transition from the program budget system to the analytical budget system, the development process of transfer expenditures up to the present has been discussed. With this section, it has been tried to reveal more clearly how much share from the budget is allocated to which sub-item of transfer expenditures. In the last part, the relationship between transfer expenditures and welfare indicators is mentioned. The definitions made throughout the study and the positive-negative effects of transfer expenditures were tried to be put forward in a more realistic way. The summary effects of transfer expenditures on economic indicators are mentioned. In order to reveal the causality between transfer expenditures and economic growth, it has been empirically tested with the Engle-Granger Co-integration Analysis and Error Correction Model, which is one of the time series analysis methods, using the 2006Q1- 2009Q4 period data.