Abstract:

Economic growth is important for increasing and developing a country's well-being level. States give importance to economic growth and development to increase the welfare and richness of their country and to solve their problems. The effect of macroeconomic indicators on economic growth varies according to the structure, characteristics, and management structures of the countries. This study examines the relationship between economic growth and Public final consumption expenditures using the annual dataset from 1961-2019. Bai-Perron structural break analysis results show that structural changes occurred in the Turkish economy during the period studied. According to the results of the ARDL cointegration analysis, the relationship between economic growth and public expenditures is negative at long term and short-term. The findings also suggest that economic growth is affected by structural breaks. This result shows that measures should be taken against the effects of structural break in the Turkish economy.

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