Effects of neoliberal policies has become visible in the world and at the same time in Turkey during 1980s. After 24th January 1980 decisions Turkish economy preferred outward oriented growth model and public finance model based on public barrowings.Resulting from implemented economy policies, effects of internal and external barrowings increased the share of interest payments in the budget until 2000s. The aim of this study is to reveal whether internal barrowing payments in Turkey between the years of 1980 and 2010 lead to increasing or decreasing effects on social payments. Relations between above mentioned variables examined by using time-series analysis method. In this context, findings which indicate that any increase in internal barrowings has a reverse effect on social payments reached by using cointegration analysis.
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