Economics, Econometrics and Finance
4 years ago

Turkish study debunks link between public spending and economic growth.

RePEc: Research Papers in Economics
Causality between Public Expenditure and Economic Growth: The Turkish Case
Muhlis Bağdigen, Hakan Çetintaş

Paper Summary

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The study looked at the relationship between government spending and economic growth in Turkey from 1965 to 2000. They found that government spending does not cause economic growth, but rather economic growth leads to changes in government spending. After using statistical tests, they concluded that neither Wagner’s Law nor Keynes' hypothesis apply to the Turkish case.