Özet:

In this study, the Wagner Act and the Keynesian Hypothesis analyzed the relationship between public spending and economic growth in Turkey for the 1930-2014 period. The stages of the series have been tested according to traditional unit root tests and unit root tests that allow structural breakdown. The Maki (2012) Integration Test, which allows multiple structural breakdowns to identify the long-term relationship between the series, has been used. After the integration relationship was established, the integration rates were predicted using FMOLS, which is the forecast of the integration rate. Finally, Hatemi-J (2012) was used asymmetrical causality method. The results found that the increase in public expenditure increased economic growth and a one-way causal relationship from public expenditure to economic growth. In the findings obtained, the Wagner Act was not valid in the period discussed in Turkey, but Keynesian Hypothesis supports a causality relationship found.